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- W2344283934 abstract "Using a model of sequential search, we show that announcements to price-match raise prices by altering consumer search behavior. First, price-matching diminishes firms’ incentives to lower prices to attract consumers who have no search costs. Second, for consumers with positive search costs, price-matching lowers the marginal benefit of search, inducing them to accept higher prices. Finally, price-matching can lead to asymmetric equilibria where one firm runs fewer sales and both firms tend to offer smaller discounts than in a symmetric equilibrium. Price increases grow in the proportion of consumers who invoke price-matching guarantees and in the level of equilibrium asymmetry." @default.
- W2344283934 created "2016-06-24" @default.
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- W2344283934 date "2015-12-11" @default.
- W2344283934 modified "2023-10-17" @default.
- W2344283934 title "Price-Match Announcements in a Consumer Search Duopoly" @default.
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- W2344283934 doi "https://doi.org/10.1002/soej.12118" @default.
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