Strategic pricing of differentiated consumer durables in a dynamic duopoly: a numerical analysis

Article Abstract:

An analysis of pricing strategies indicates that various forms of competition can affect prices between competitors. The possibilities for cooperation include monopoly, competition, following (when one company responds to the other's moves), and cost pricing. The analysis reveals that optimal price trajectories fall into three categories: steadily increasing, steadily decreasing, and an initial increase followed by a decrease. Graphs for the various trajectories is provided.

Author: Nascimento, Fernando, Vanhonacker, Wilfried R.
Publisher: John Wiley & Sons, Inc.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 1993
Durable goods

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Equilibrium pricing and advertising strategies for nondurable experience products in a dynamic duopoly

Article Abstract:

An analysis of the relationship between time and advertising has yielded a model for determining how a company's advertising decisions will be affected by consumers' experience with their product. The theoretic-model assumes a dynamic duopoly, simulates the equilibrium paths using a discrete-time algorithm, and focuses upon price and advertising decisions only.

Author: Rao, Vithala R., Chintagunta, Pradeep K., Vilcassim, Naufel J.
Publisher: John Wiley & Sons, Inc.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 1993
Tests, problems and exercises, Advertising, Equilibrium (Economics), Nondurable goods

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Subjects list: Models, Prices and rates, Pricing, Duopolies
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