Price dynamics in a two-period reputation model

Authors

  • Dragan Filipovich El Colegio de México, A.C.

DOI:

https://doi.org/10.24201/ee.v16i2.205

Keywords:

Milgrom and Roberts model, price dynamics

Abstract

This paper looks at the time-path of prices in a two-period modified version of the reputation model of Milgrom and Roberts(10) in which a non-standard price signalling stage game is substituted for the entry-deterrence game those authors work with. It shows that prices may rise or fall from one period to the next. Also, it shows that ‘bonding’ is not possible in this environment.

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Published

2001-07-01

How to Cite

Filipovich, D. (2001). Price dynamics in a two-period reputation model. Estudios Económicos De El Colegio De México, 16(2), 185–201. https://doi.org/10.24201/ee.v16i2.205

Issue

32-vol. 16, no. 2, july-december, 2001

Section

Articles