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Evaluation of Aggressive Competitive Pricing Strategies


Natter, Martin; Hruschka, Harald (1998). Evaluation of Aggressive Competitive Pricing Strategies. Marketing Letters, 9(4):337-347.

Abstract

The main contribution of this paper is a method that allows one to study the effects of different degrees of competition. We find that optimal prices and profits are more sensitive to cooperative than to aggressive behavior on the part of competitors. With more aggressive policies, the average pricing level decreases and the average difference between high and low prices increases. An empirical model of the detergent market illustrates the methodology.

Abstract

The main contribution of this paper is a method that allows one to study the effects of different degrees of competition. We find that optimal prices and profits are more sensitive to cooperative than to aggressive behavior on the part of competitors. With more aggressive policies, the average pricing level decreases and the average difference between high and low prices increases. An empirical model of the detergent market illustrates the methodology.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:1998
Deposited On:09 Dec 2016 12:46
Last Modified:10 Dec 2016 04:08
Publisher:Springer
ISSN:0923-0645
Related URLs:http://www.jstor.org/stable/40216177
Other Identification Number:merlin-id:14218

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