Article ID Journal Published Year Pages File Type
1017510 Journal of Business Research 2012 7 Pages PDF
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
Related Topics
Social Sciences and Humanities Business, Management and Accounting Business and International Management
Preview
Price-matching guarantees: Influences on pricing strategy in a market with asymmetric firms
Authors
, , ,