Citation

Discussion Paper Details

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Full Details

Title: Cost of Delay, Deadlines and Endogenous Price Leadership

Author(s): Tuvana Pastine and Ivan Pastine

Publication Date: November 2001

Keyword(s): endogenous timing, price leadership and war of attrition

Programme Area(s): Industrial Organization

Abstract: This Paper analyses endogenous price leadership in a duopolistic market with differentiated products and symmetrically informed firms. We study the effects of deadlines and discounting in a standard endogenous leadership model. We show that there will be occasional changes in the identity of the price leader with any cost of delay or discounting, however small. By analyzing the incentives that induce a firm to take up the leader position we derive positive predictions about which firm will lead most price changes.

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Bibliographic Reference

Pastine, T and Pastine, I. 2001. 'Cost of Delay, Deadlines and Endogenous Price Leadership'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=3054