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Price Discrimination in Dynamic Cournot Competition

Wei-li Zhang, Qi-Qing Song, Yi-Rong Jiang
2019 Discrete Dynamics in Nature and Society  
This paper introduces a new Cournot duopoly game and gives an applied study for price discrimination in a market by dynamic methods. One of two oligopolies has two different prices for a homogeneous product, while the other charges one kind of price. It is found that there is only one stable equilibrium for the discrete dynamic system, and a corresponding stable condition is given. Using a discriminative price is not always beneficial to a firm in equilibrium. If both oligopolies carry out
more » ... lies carry out price discrimination, the market's average price is lower than when only one oligopoly does it. The results are verified by numerical simulations.
doi:10.1155/2019/9231582 fatcat:ltqaqrju6vf2teze443r7gggwu