A Note on the Most‐Favoured‐Customer Pricing Policy
Kazuhiro Ohnishi
Bulletin of Economic Research, 2003, vol. 55, issue 4, 407-413
Abstract:
This paper extends the retroactive most‐favoured‐customer pricing policy examined by Cooper (1986). He showed that the policy enabled both firms in a duopoly to offer higher prices and to enjoy higher profits. This paper introduces a variable into the most‐favoured‐customer pricing policy. Then, it shows that there is an equilibrium in which the duopolists can further increase their profits.
Date: 2003
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https://doi.org/10.1111/1467-8586.00184
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Persistent link: https://EconPapers.repec.org/RePEc:bla:buecrs:v:55:y:2003:i:4:p:407-413
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