| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5078634 | International Journal of Industrial Organization | 2009 | 9 Pages |
Abstract
In this paper, I modify Varian's [Varian, H.R. (1980). A model of sales, American Economic Review, 70(4), 651-659] model of sales to allow for heterogeneity in consumer preferences. I show that in mixed strategy equilibria each firm charges a finite number of prices. Using this characterization, I examine the effect of consumer heterogeneity on firms' optimal pricing strategies.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Maxim Sinitsyn,