Competitive Pricing by a Price Leader

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Abhik Roy; Dominique M. Hanssens; Jagmohan S. Raju;
  • Journal: Management Science,volume 40,issue 7 July,pages809-823
  • Related identifiers: doi: 10.1287/mnsc.40.7.809
  • Subject: competitive strategy, pricing, games: noncooperative, sequential [marketing]
    acm: TheoryofComputation_GENERAL | TheoryofComputation_MISCELLANEOUS

We examine the problem of pricing in a market where one brand acts as a price leader. We develop a procedure to estimate a leader's price rule, which is optimal given a sales target objective, and allows for the inclusion of demand forecasts. We illustrate our estimatio... View more
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