Title: Competitive Dynamic
Pricing with Guarantees in the Presence of Strategic Consumers
Yuri G.
Levin
Abstract: We consider a two-period model of duopolistic capacitated dynamic
pricing competition when each firm's strategy can include price matching, and
consumer response is strategic.
The products offered by the firms are differentiated, and consumer choice is
described using a random utility model that takes expected
product availability into account. We study the properties of equilibrium strategies, and whether price matching can be an
effective tool in countering strategic consumer behavior.
Joint work with Yossi
Aviv and Mikhail Nediak