Sequential moves and tacit collusion: reaction-function cycles in a finite pricing duopoly

Article Abstract:

A study of the sequential move, finite horizon pricing duopoly model restricted to Markov strategies and defined by price-competing manufacturers of a homogeneous product showed stationary patterns that were unaffected by initial market conditions. Market price fails to settle down and remains higher than marginal costs, which indicates the failure of long-horizon or non-Markovian strategies to produce market profits under dynamic price competition.

Research, Competition (Economics), Economic aspects, Prices, Markov processes, Industrial concentration

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Prisoners' dilemma in duopoly (super) games

Article Abstract:

Firms cannot pursue a strategy in a certain market stage because the same dilemma on choosing the strategic variable to stabilize cartel surfaces with the solution to the Pareto inefficiency affecting a one-shot game. Firms are also confused in their preferences, which either depend on maximizing single-period profits or cartel stability. Single period profits prevail when firms behave non-cooperatively.

Management-Goal Setting, Analysis, Industrial efficiency, Economic efficiency, Managers, Game theory, Goal setting, Prisoner's dilemma game

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Experimentation and learning in a differentiated-products duopoly

Article Abstract:

A duopoly market model marked by firm uncertainty over product differentiation levels is developed to examine market price-setting behavior. The price differential helps firms recognize variations across realized demands. Market information levels exhibit a positive functional relationship with price dispersion levels. Market results vary across product differentiation levels.

Product differentiation, Substitute products

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