Price-matching guarantees: Influences on pricing strategy in a market with asymmetric firms

Dong-Hee Koh, Junyean Moon and Ralf Schellhase

Journal of Business Research, 2012, vol. 65, issue 11, 1551-1557

Abstract: This study analyzes the price effects of price-matching guarantees in a duopoly where consumers are heterogeneous with respect to firm loyalty, and a firm has more loyal customers than the other firm. The results show that equilibrium matching policy and pricing strategy depend on market conditions. Price-matching guarantees can result either in the form of price collusion or price discrimination.

Keywords: Price-matching guarantees; Price discrimination; Consumer loyalty (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:65:y:2012:i:11:p:1551-1557

DOI: 10.1016/j.jbusres.2011.02.039

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