Low price signals high capacity

DOI10.1007/S00712-013-0355-3MaRDI QIDQ2016477zbMATHOpenAlexFDO

Authors Klaus Kultti, Eeva Mauring

Publication date 20 June 2014

Published in Journal of Economics (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1007/s00712-013-0355-3

zbMATH Keywords

capacitypricessignalling

Mathematics Subject Classification ID

Microeconomic theory (price theory and economic markets) (91B24) Special types of economic markets (including Cournot, Bertrand) (91B54)

Recommendations

• Competitive pricing despite search costs when lower price signals quality
• Price and capacity competition
• Capacity Pricing
• Fixed price and quality signals
• Price, delivery time guarantees and capacity selection
• Unpriced quality

Cites work

• DIRECTED SEARCH AND FIRM SIZE*
• Directed search with endogenous capacity
• Directed search with multi-vacancy firms
• Sellers like clusters
• Signaling Games and Stable Equilibria

Cited in

(3)

• Greater search cost reduces prices
• Price competition with capacity uncertainty -- feasting on leftovers
• On price versus quality

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