DYNAMIC PRICE COMPETITION WITH CAPACITY CONSTRAINTS AND A STRATEGIC BUYER

• 成果类型: Article
• 署名作者: Anton, James J.; Biglaiser, Gary; Vettas, Nikolaos
• 署名单位: Duke University; University of North Carolina; University of North Carolina Chapel Hill; Athens University of Economics & Business; Center for Economic & Policy Research (CEPR)
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12077
• 发表日期: 2014
• 页码: 943-958
• 关键词: bertrand competition; precommitment; split

摘要

We analyze a simple dynamic durable good model. Two incumbent sellers and potential entrants choose their capacities at the start of the game. We solve for equilibrium capacity choices and the (necessarily mixed) pricing strategies. In equilibrium, the buyer splits the order with positive probability to preserve competition, making it possible that a high and low price seller both have sales. Sellers command a rent above the value of unmet demand by the other seller. A buyer benefits from either a commitment not to make future purchases or by hiring an agent to always buy from the lowest priced seller.