Business, Management and Accounting
3 years ago

Price matching leads to lower prices and benefits consumers in competitive markets.

3 views
Output Decisions and Price Matching: Theory and Experiment
Mongoljin Batsaikhan, Norovsambuu Tumennasan

Paper Summary

Price matching leads to Cournot outcome when firms choose both price and output. Experimental study confirms this. In markets with many firms, price matching benefits consumers. In markets with few firms, effects depend on demand and cost functions.

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