Dynamic Pricing Competition with Strategic Customers Under Vertical Product Differentiation

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Qian Liu; Dan Zhang;
  • Journal: Management Science,volume 59,issue 1 August,pages84-101
  • Related identifiers: doi: 10.1287/mnsc.1120.1564
  • Subject: dynamic pricing, pricing competition, strategic customers, vertical differentiation

We consider dynamic pricing competition between two firms offering vertically differentiated products to strategic customers who are intertemporal utility maximizers. We show that price skimming arises as the unique pure-strategy Markov perfect equilibrium in the game u... View more
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