Mixed pricing in oligopoly with limited monopoly

Zhong Wen

Economics Letters, 2014, vol. 125, issue 1, 87-92

Abstract: We analyze price competition between two brands. Buyers consist of switchers and two segments of customers with limited brand loyalty. We identify a unique symmetric mixed-strategy price equilibrium and find that competition is most relaxed when there exists some switchers.

Keywords: Brand loyalty; Price dispersion; Game theory; Mixed strategy (search for similar items in EconPapers)
JEL-codes: D43 L13 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:125:y:2014:i:1:p:87-92

DOI: 10.1016/j.econlet.2014.08.021

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