Show simple item record

dc.contributor.authorAguirre Pérez, Iñaki ORCID
dc.contributor.authorMartín Arroyuelos, Ana María
dc.date.accessioned2011-12-27T18:34:40Z
dc.date.available2011-12-27T18:34:40Z
dc.date.issued2001-02
dc.identifier.issn1134-8984
dc.identifier.urihttp://hdl.handle.net/10810/5767
dc.description.abstractIn this paper, whe show that the strategic choice of spatial price policy under duopoly crucially depends on the rules of price competition. Thisse and Vives (1988) show that spatial price discrimination is a dominant strategy when the mill pricing firm is the leader and the discriminatory firm is the follower. When the leader-follower roles are reversed we find that equilibrium pricing policies depend on the consumer's reservation value. The pricing policy game has two equilibria in pure strategies, either both firms price uniformly (f.o.b.) or both firms price discriminate, when the reservation value is low. For intermediate levels of the reservation value, price discrimination is a dominant strategy and the pricing policy game is similar to a Prisoner's Dilemma. When the consumer reservation value is large enough we obtain asymmetric equilibria in which one firm prices according to f.o.b. and the other price discriminates. We also analyze the case of simultaneous price competition and find a mixed strategies equilibrium for the price competition subgame such that the pricing policy game has two equilibria in pure strategies, either both firms price uniformly or both firms price discriminate.es
dc.description.sponsorshipFinancial support from DGES (PB97-0603), UPV (035.321-HB159/98) and GV (PI-1998-86) is gratefully acknowledged.es
dc.language.isoenges
dc.relation.ispartofseriesBiltoki 2001.04
dc.rightsinfo:eu-repo/semantics/openAccesses
dc.rights.urihttp://creativecommons.org/licenses/by-nc-sa/3.0/*
dc.subjectspatial price discriminationes
dc.subjectprice policyes
dc.titleOn the strategic choice of spatial price policy: the role of the pricing game ruleses
dc.typeinfo:eu-repo/semantics/workingPaperes
dc.rights.holderAttribution-NonCommercial-ShareAlike 3.0 Unported*
dc.subject.jelL12es
dc.subject.jelR32
dc.identifier.repecRePEc:ehu:biltok:200104es
dc.departamentoesFundamentos del análisis económico Ies_ES
dc.departamentoesEconomía aplicada III (Econometría y Estadística)es_ES
dc.departamentoeuEkonomia analisiaren oinarriak Ies_ES
dc.departamentoeuEkonomia aplikatua III (ekonometria eta estatistika)es_ES
dc.subject.categoriaINDUSTRIAL ORGANIZATION
dc.subject.categoriaURBAN, RURAL, AND REGIONAL ECONOMICS


Files in this item

Thumbnail
Thumbnail

This item appears in the following Collection(s)

Show simple item record

Attribution-NonCommercial-ShareAlike 3.0 Unported
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-ShareAlike 3.0 Unported