On the strategic choice of spatial price policy: the role of the pricing game rules
The strategic choice of spatial price policy under duopoly crucially depends on the rules of price competition. We show that under simultaneous price competition and under leader-follower price competition (with the discriminatory firm being the leader), the pricing policy game is not, as stated by Thisse and Vives (1988), a Prisoner's Dilemma.
Volume (Year): 12 (2001)
Issue (Month): 2 ()
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References listed on IDEAS
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- Lederer, Phillip J & Hurter, Arthur P, Jr, 1986. "Competition of Firms: Discriminatory Pricing and Location," Econometrica, Econometric Society, vol. 54(3), pages 623-640, May.
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"On the Strategic Choice of Spatial Price Policy,"
American Economic Review,
American Economic Association, vol. 78(1), pages 122-137, March.
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