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- September 2016
- Article
History-based versus Uniform Pricing in Growing and Declining Markets
By: Oz Shy, Rune Stenbacka and David Hao Zhang
We analyze the Markov Perfect Equilibria of an infinite-horizon overlapping generations model with consumer lock-in to compare the performance of history-based and uniform pricing in growing and declining markets. Under history-based pricing, firms charge higher prices... View Details
Keywords: History-based Pricing; Introductory Discount; Uniform Pricing; Consumer Lock-in; High Switching Costs; Demand and Consumers; Competition; Price; Market Entry and Exit; Product Marketing
Shy, Oz, Rune Stenbacka, and David Hao Zhang. "History-based versus Uniform Pricing in Growing and Declining Markets." International Journal of Industrial Organization 48 (September 2016): 88–117.