Low price signals high capacity

DOI10.1007/S00712-013-0355-3zbMATH Open1290.91116OpenAlexW1983333709MaRDI QIDQ2016477FDOQ2016477

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

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

zbMATH Keywords

capacitypricessignalling

Mathematics Subject Classification ID

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

Cites Work

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

Cited In (3)

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

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