Dynamic Price Adjustment Under Imperfect Competition

We study dynamic price adjustment under imperfect competition when consumers have non-time-separable preferences. In our model an intertemporal link arises in the consumers' maximization problems because current price and firms must take this into account when making their decisions. The main result is that equilibrium prices follow a dynamic stochastic process in which the current price depends on past prices and on random disturbances.

MoreLess

Year of publication:	1998
Authors:	Eberwein, C. ; To, T.
Institutions:	Department of Economics, University of Warwick
Subject:	PRICING \| OLIGOPOLIES \| GENERATIONS

More details

Series:	The Warwick Economics Research Paper Series (TWERPS).
Type of publication:	Book / Working Paper
Notes:	30 pages
Classification:	C73 - Stochastic and Dynamic Games ; D21 - Firm Behavior ; D43 - Oligopoly and Other Forms of Market Imperfection
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005583021