We investigate the pricing policy and the welfare effects associated with a firm's ability to commit to future prices in a storable good market where the cost of production varies over time. If the cost is expected to increase, the firm's lack of commitment generates price changes relative to...

Using a model of dynamic price competition, this paper provides an explanation from the supply side for the well-established observation that retail prices adjust faster when input costs rise than when they fall. The opportunity of profitable storing for the next period induces competitive firms...

This paper characterizes the degree of price discretion that competing organizations (principals) award to their sales managers (agents) and examines how such discretion is affected by principals' competitive conduct, market concentration, product substitutability, and demand volatility. We lay...