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Iñaki Aguirre and Ana M. Martin |
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''On the strategic choice of spatial price policy: the role of the pricing game rules.'' |
( 2001, Vol. 12 No.2 ) |
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The strategic choice of spatial price policy under duopoly crucially depends on the rules of price competition. We show that under simultaneous price competition and under leader-follower price competition (with the discriminatory firm being the leader), the pricing policy game is not, as stated by Thisse and Vives (1988), a Prisoner's Dilemma. |
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Keywords: |
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General D4 - Market Structure and Pricing: General |
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Manuscript Received : May 24 2001 | | Manuscript Accepted : Jul 25 2001 |
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