search query: @author Bagwell, K. / total: 19
reference: 19 / 19
« previous | next »
| Author: | Bagwell, K. |
| Title: | Introductory price as a signal of cost in a model of repeat business. |
| Journal: | Review of Economic Studies
1987 : JUL, VOL. 54:179, p. 365-384 |
| Index terms: | PRICING CONSUMERS GAME THEORY |
| Language: | eng |
| Abstract: | A two period game between firms and customers is considered. Firms are privately informed about their individual costs, and customers must pay a search cost in order to learn a firm's current price. Customers thus have incentive to use introductory price as a signal of cost and, hence, second period price. Recent refinements of the sequential equilibrium concept are employed, and the resulting equilibria involve low introductory prices, that is, introductory sales. Directions of further research are also discussed. |
« previous | next »
SCIMA