Dynamic Price Adjustment Under Imperfect Competition

C. Eberwein and Ted To

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: We study dynamic price adjustment under imperfect competition when consumers have non-time-separable preferences. In our model an intertemporal link arises in the consumers' maximization problems because current price and firms must take this into account when making their decisions. The main result is that equilibrium prices follow a dynamic stochastic process in which the current price depends on past prices and on random disturbances.

Keywords: PRICING; OLIGOPOLIES; GENERATIONS (search for similar items in EconPapers)
JEL-codes: C73 D21 D43 (search for similar items in EconPapers)
Pages: 30 pages
Date: 1998
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https://warwick.ac.uk/fac/soc/economics/research/w ... 95-1998/twerp505.pdf

Related works:
Working Paper: DYNAMIC PRICE ADJUSTMENT UNDER IMPERFECT COMPETITION (1998)
Working Paper: Dynamic Price Adjustment Under Imperfect Competition (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:505

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