Variable Pricing in Oligopoly Markets

  title={Variable Pricing in Oligopoly Markets},
  author={F. Bass and Ernan Haruvy and Ashutosh Prasad},
Firms continuously vary the prices of their products in the marketplace. These variations sometimes exhibit consistent patterns, such as higher-priced products having greater price variability. For example, in the grocery industry, more expensive stores tend to have more frequent price changes (Information Resources Inc. 1993). Similarly, with airlines, the lowerpriced, low-frills Southwest Airlines has less price variability than the major national carriers American Airlines and Delta. In… CONTINUE READING