haku: @indexterm Competitive advantage / yhteensä: 665
viite: 328 / 665
Tekijä: | Bouckaert, J. Degryse, H. |
Otsikko: | Price competition between an expert and a non-expert |
Lehti: | International Journal of Industrial Organization
2000 : AUG, VOL. 18:6, p. 901-923 |
Asiasana: | Equilibrium analysis Pricing Policy Competitive advantage Consumer behaviour Economic theory Market research Models |
Kieli: | eng |
Tiivistelmä: | This paper characterizes price competition btw. an expert and a non-expert. In contrast with the expert, the non-expert's repair technology is not always successful. Consumers visit the expert after experiencing an unsuccessful match at the non-expert. This re-entry affects the behaviour of both sellers. For low enough probability of successful repair at the non-expert, all consumers first visit the non-expert, and a timid-pricing equilibrium results. If the non-expert's repair technology performs well enough, it pays for some consumers to disregard the non-expert a visit. They directly go to the expert's shop, and an aggressive-pricing equilibrium pops up. For intermediate values of the non-expert's successful repair a mixed-pricing equilibrium emerges where the expert randomizes over the monopoly price and some lower price. |
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