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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- Thisse, J.-F. & Vives, X., 1987.
"On the strategic choice of spatial price policy,"
CORE Discussion Papers
1987008, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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Journal of Industrial Economics,
Wiley Blackwell, vol. 40(3), pages 249-60, September.
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