Paper
An Oligopoly Model with Donative Most-Favored-Nation Pricing
- Authors:
- Kazuhiro Ohnishi
- Abstract
- This paper studies a two-stage oligopoly model with donative most-favored-nation pricing. First, each profit- maximizing firm simultaneously and independently decides whether to offer a donative most-favored-nation policy as a strategic instrument. Second, each firm simultaneously and independently chooses its actual price. We find that the introduction of donative most-favored-nation pricing into the analysis of oligopoly competition is profitable for all firms.
- Keywords
- Oligopoly Model; Donative Most-Favored-Nation Pricing; Collusive Equilibrium
- StartPage
- 104
- EndPage
- 107
- Doi