ISSN:
1617-7134
Keywords:
segmentation
;
loyalty
;
mixed strategy
;
D43
;
L13
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract In this paper, we characterize two hybrid equilibria for the three-firm case in segmented markets in which consumers not only value the product itself but also the environment within which the consumption takes place. In equilibrium, the firm with the larger population of loyal consumers chooses the monopoly price while the remaining two firms play a mixed strategy. In the duopoly case, the unique equilibrium is in mixed strategies and no firm focuses only on its loyal consumers.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF01231490
Permalink