Dynamic pricing strategy leads to non-preemptive equilibrium in competitive markets.
This paper looks at how two companies compete in pricing their products when buyers can learn from each other's choices. The study finds that the expected price of a product in the future is the same as its current price, leading to a non-preemptive equilibrium where both companies have a chance to make a sale in the future even if they don't sell now. The likelihood of delay in making a purchase depends on how much the buyers' decisions are influenced by each other.