Scholars have compared the pricing behaviour where a monopolist in the short run produces heterogeneous products 1 and 2, and a duopolist i produces goods i (i = 1, 2), where there are exogenous shocks to marginal cost and/or industry demand. This pricing behaviour is short run in that no entry...

The relationship between market structure and firms’ pricing behaviour has been a major and controversial issue in industrial economics. The question of how firms’ pricing behaviour differs across market structures is the focus of the administered-price thesis. In this paper the authors...