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- W1925181798 abstract "In the text-book model of dynamic Bertrand competition,competing firms meet the same demand function every period. This is not asatisfactory model of the demand side if consumers can make intertemporalsubstitution between periods. Each period then leaves some residual demandto future periods, and consumers who observe price under-cutting may correctlyanticipate an ensuing price war and therefore postpone their purchases.Accordingly, the interaction between the firms no longer constitutes a repeatedgame, and hence falls outside the domain of the usual Folk theorems.We analyze collusive pricing in such situations, and study cases when consumershave perfect and imperfect foresight and varying degrees of patience.It turns out that collusion against patient and forward-looking consumers iseasier to sustain than collusion in the text-book model." @default.
- W1925181798 created "2016-06-24" @default.
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- W1925181798 date "2002-03-01" @default.
- W1925181798 modified "2023-09-23" @default.
- W1925181798 title "Bertrand competition with intertemporal demand" @default.
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- W1925181798 doi "https://doi.org/10.7916/d8rf666s" @default.
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