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Mixed pricing in oligopoly with limited monopoly

Listed author(s):
  • Wen, Zhong
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    We analyze price competition between two brands. Buyers consist of switchers and two segments of customers with limited brand loyalty. We identify a unique symmetric mixed-strategy price equilibrium and find that competition is most relaxed when there exists some switchers.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0165176514003115
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    Article provided by Elsevier in its journal Economics Letters.

    Volume (Year): 125 (2014)
    Issue (Month): 1 ()
    Pages: 87-92

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    Handle: RePEc:eee:ecolet:v:125:y:2014:i:1:p:87-92
    DOI: 10.1016/j.econlet.2014.08.021
    Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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    8. Shilony, Yuval, 1977. "Mixed pricing in oligopoly," Journal of Economic Theory, Elsevier, vol. 14(2), pages 373-388, April.
    9. Michael R. Baye & John Morgan, 2001. "Information Gatekeepers on the Internet and the Competitiveness of Homogeneous Product Markets," American Economic Review, American Economic Association, vol. 91(3), pages 454-474, June.
    10. Jagmohan S. Raju & V. Srinivasan & Rajiv Lal, 1990. "The Effects of Brand Loyalty on Competitive Price Promotional Strategies," Management Science, INFORMS, vol. 36(3), pages 276-304, March.
    11. Narasimhan, Chakravarthi, 1988. "Competitive Promotional Strategies," The Journal of Business, University of Chicago Press, vol. 61(4), pages 427-449, October.
    12. Yuxin Chen & Chakravarthi Narasimhan & Z. John Zhang, 2001. "Individual Marketing with Imperfect Targetability," Marketing Science, INFORMS, vol. 20(1), pages 23-41, November.
    13. Ganesh Iyer & Amit Pazgal, 2003. "Erratum: Internet Shopping Agents: Virtual Co-Location and Competition," Marketing Science, INFORMS, vol. 22(2), pages 271-271, November.
    14. Bing Jing & Zhong Wen, 2008. "Finitely Loyal Customers, Switchers, and Equilibrium Price Promotion," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 17(3), pages 683-707, 09.
    15. A. M. McGahan & Pankaj Ghemawat, 1994. "Competition to Retain Customers," Marketing Science, INFORMS, vol. 13(2), pages 165-176.
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