Price-matching policy with imperfect information
AbstractThe model of price-matching policy emphasizes on the importance of information imperfection. The demand is derived based on the assumptions that consumers have different reservation prices and different preferences over location. When a firm undercuts its competitor's price, it changes the demand structure of the market. The result shows that price-matching policies are anticompetitive, but they do not facilitate monopoly price. Copyright © 2005 John Wiley & Sons, Ltd.
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Bibliographic InfoArticle provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.
Volume (Year): 26 (2005)
Issue (Month): 6 ()
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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976
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- Arbatskaya, Maria & Hviid, Morten & Shaffer, Greg, 2004.
"On the Incidence and Variety of Low-Price Guarantees,"
Journal of Law and Economics,
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