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Pastine, Tuvana (2004) Cost of delay and endogenous price leadership. International Journal of Industrial Organization, 22. pp. 135-145. ISSN 0167-7187
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Abstract
We study the effects of discounting in a standard endogenous price leadership model. We show
that there will be occasional changes in the identity of the leader with any cost of delay or
discounting, however small. By analyzing the incentives that induce a firm to take up the leader
position, we derive positive predictions about which firm will lead most price changes. Firms with
shorter reaction times will be more likely to become the price leader, as will firms with lower cost of
delay if the firms’ reaction times are similar.
| Item Type: | Article |
|---|---|
| Keywords: | Endogenous timing; Price leadership; War of attrition; |
| Academic Unit: | Faculty of Social Sciences > Economics, Finance and Accounting |
| Item ID: | 8500 |
| Identification Number: | 10.1016/j.ijindorg.2003.05.001 |
| Depositing User: | Tuvana Pastine |
| Date Deposited: | 25 Jul 2017 12:38 |
| Journal or Publication Title: | International Journal of Industrial Organization |
| Publisher: | Elsevier |
| Refereed: | Yes |
| Related URLs: | |
| URI: | https://mural.maynoothuniversity.ie/id/eprint/8500 |
| Use Licence: | This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here |
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