IDEAS home Printed from https://ideas.repec.org/a/ucp/jnlbus/v72y1999i1p135-57.html
   My bibliography  Save this article

Pricing Patterns as Outcomes of Product Positions

Author

Listed:
  • Tyagi, Rajeev K

Abstract

Prior empirical work shows that different markets are characterized by different pricing patterns, such as Bertrand-Nash pricing or Stackelberg leader-follower pricing. The author considers a duopolistic market where ex ante identical firms sequentially position their products prior to competing on prices (in a single- or multiperiod setting) and show that the unique equilibrium outcome involves (1) firms choosing Stackelberg pricing over Bertrand-Nash pricing; and (2) the positioning first mover acting as the price leader. An attractive property of this model is that the ex post larger firm acts as the price leader, which is consistent with prior empirical evidence. Copyright 1999 by University of Chicago Press.

Suggested Citation

  • Tyagi, Rajeev K, 1999. "Pricing Patterns as Outcomes of Product Positions," The Journal of Business, University of Chicago Press, vol. 72(1), pages 135-157, January.
    • Handle: RePEc:ucp:jnlbus:v:72:y:1999:i:1:p:135-57
    DOI: 10.1086/209605
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/209605
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    File URL: https://libkey.io/10.1086/209605?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vermeulen, Ben & La Poutré, Han & de Kok, Ton, 2012. "Dynamics and equilibria under incremental horizontal differentiation on the Salop circle," MPRA Paper 51449, University Library of Munich, Germany.
    2. Schindehutte, Minet & Morris, Michael H., 2001. "Pricing as entrepreneurial behavior," Business Horizons, Elsevier, vol. 44(4), pages 41-48.
    3. Kress, Dominik & Pesch, Erwin, 2012. "Sequential competitive location on networks," European Journal of Operational Research, Elsevier, vol. 217(3), pages 483-499.
    4. Scott M. Gilpatric & Youping Li, 2021. "Endogenous Price Leadership and Product Positioning," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 58(2), pages 287-302, March.
    5. Youping Li & Jie Shuai, 2018. "A Welfare Analysis of Location Space Constraints with Vertically Separated Sellers," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(1), pages 161-177, February.
    6. Abhik Roy, 2022. "A dynamic model of price competition and promotion in prescription drug markets," Marketing Letters, Springer, vol. 33(4), pages 577-591, December.
    7. Cvsa, Viswanath & Gilbert, Stephen M., 2002. "Strategic commitment versus postponement in a two-tier supply chain," European Journal of Operational Research, Elsevier, vol. 141(3), pages 526-543, September.
    8. Abhik Roy & Jagmohan Raju, 2011. "The influence of demand factors on dynamic competitive pricing strategy: An empirical study," Marketing Letters, Springer, vol. 22(3), pages 259-281, September.
    9. Rajeev K. Tyagi, 2000. "Sequential Product Positioning Under Differential Costs," Management Science, INFORMS, vol. 46(7), pages 928-940, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jnlbus:v:72:y:1999:i:1:p:135-57. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.jstor.org/journal/jbusiness .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.