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Zeitschrift für Operations Research

, Volume 29, Issue 2, pp B1–B16 | Cite as

Optimal pricing in a dynamic duopoly game model

  • E. Dockner
Article

Abstract

This paper deals with optimal pricing of new products over a finite planning period in a duopolistic market. Modelling saturation effects and no cost-side learning effects optimal pricing strategies for different kinds of demand functions are determined. In this direction the paper extends some results known from the monopolistic case. It turns out, that the optimal prices are decreasing functions of time, where the prices at each moment of time are higher than the marginal costs. Thus the optimal pricing strategies can be characterized as skimming policies.

Keywords

Marginal Cost Demand Function Learning Effect Planning Period Saturation Effect 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Zusammenfassung

Die vorliegende Arbeit beschäftigt sich mit der optimalen Preisgestaltung von neuen Produkten in einer endlichen Planungsperiode unter der Annahme einer duopolistischen Marktform. Das Modell beschränkt sich auf die Analyse von Sättigungseffekten, wobei es möglich ist, optimale Preispfade für verschiedene Klassen von Nachfragefunktionen herzuleiten. Die Ergebnisse der Arbeit stellen Verallgemeinerungen des Monopolfalles dar. Durch die Anwendung von quantitativen Lösungsmethoden wird gezeigt, daß die optimalen Preispfade fallende Funktionen der Zeit sind. Dadurch, und durch das Resultat, daß die Preise stets größer sind als die Grenzkosten, stellen die optimalen Preisstrategien „Skimming“ Politiken dar.

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Copyright information

© Physica-Verlag 1985

Authors and Affiliations

  • E. Dockner
    • 1
  1. 1.Institut für Volkswirtschaftstheorie und -politik (VW II)Wirtschafts- universität WienWien

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