Swedish newspapers use price leadership to maximize profits in duopoly markets
This article looks at how pricing works in the Swedish daily newspaper industry. The researchers studied different pricing strategies used by newspapers, like offering contracts with different durations and changing prices based on competition. They found that when consumers are locked into contracts, firms may raise prices to cover costs. Large price changes are often announced early, especially in duopoly markets. Also, firms in weaker positions tend to offer more discounts.