TY - JOUR
T1 - Strategic pricing of differentiated consumer durables in a dynamic duopoly
T2 - a numerical analysis
AU - Nascimento, Fernando
AU - Vanhonacker, Wilfried R.
PY - 1993
Y1 - 1993
N2 - Under different modes of competitive pricing behavior, profit‐maximizing price trajectories are derived for durable products in a dynamic duopoly. Open‐loop co‐operative and non‐cooperative pricing behavior is analyzed within a comprehensive model where sales of differentiated products are described by interlocked diffusion processes with realistic demand characteristics. Because of analytic complexity, the optimal trajectories implied by the control and differential‐game problems are derived numerically across an extensive set of plausible market scenarios. Manipulation of initial market conditions enables derivation of optimal competitive pricing as a function of timing of entry.
AB - Under different modes of competitive pricing behavior, profit‐maximizing price trajectories are derived for durable products in a dynamic duopoly. Open‐loop co‐operative and non‐cooperative pricing behavior is analyzed within a comprehensive model where sales of differentiated products are described by interlocked diffusion processes with realistic demand characteristics. Because of analytic complexity, the optimal trajectories implied by the control and differential‐game problems are derived numerically across an extensive set of plausible market scenarios. Manipulation of initial market conditions enables derivation of optimal competitive pricing as a function of timing of entry.
UR - http://www.scopus.com/inward/record.url?scp=84986857953&partnerID=8YFLogxK
U2 - 10.1002/mde.4090140302
DO - 10.1002/mde.4090140302
M3 - Article
AN - SCOPUS:84986857953
SN - 0143-6570
VL - 14
SP - 193
EP - 220
JO - Managerial and Decision Economics
JF - Managerial and Decision Economics
IS - 3
ER -