Competition in posted prices with bargaining

Working paper

In this paper we study price competition between firms when some consumers attempt tobargain while others buy at the public list or posted prices. Even though bargainers succeed innegotiating discounts off the list prices, their presence dampens competitive pressure in the marketby reducing the incentive to undercut a rival

Authors: Gill, D; Thanassoulis, J

• Publication status: Published
• Publisher: University of Oxford
• Series: Department of Economics Discussion Paper Series
• Publication date: 2013-01-14
• Paper number: 639
• Keywords: collusion; negotiation; discounts; outside option; Hotelling line; price takers; list prices; posted prices; haggling; bargaining