Type of Publication: Article in Journal

Reinvestigating the Uniqueness of Price Equilibria in a Product Positioning Model under Price Competition in a Multisegmented Market

Author(s):

Kress, D.

Title of Journal:

Operations Research Letters

Volume (Publication Date):

43 (2015)

Number of Issue:

6

pages:

599-600

Language:

Englisch

Keywords:

Product positioning, Price competition, Nash equilibrium

Digital Object Identifier (DOI):

doi:10.1016/j.orl.2015.09.007

Fulltext:

Reinvestigating the Uniqueness of Price Equilibria in a Product Positioning Model under Price Competition in a Multisegmented Market (272 KB)

Citation:

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Abstract

We reinvestigate a theoretical result by Rhim and Cooper (2005), who provide a uniqueness condition for price equilibria in a two-stage competitive product positioning model. We show that this condition is very restrictive by providing a simple proof for the fact that it eventually results in parametric pricing. As a consequence, it misses the two-stage characteristic that the model originally aims at.