|Publisher:||Stern School of Business, New York University|
|Abstract:||In many markets, demand adjusts slowly to changes in prices, i.e., demand is "viscous." For such a market, the time path of a firm's prices acquires added significance, compared with the case of instantaneous demand response. In this paper I explore some problems in strategic dynamic pricing of a service, in the presence of viscous demand, for simple models of a monopoly and a duopoly.|
|Appears in Collections:||IOMS: Information Systems Working Papers|
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