Article ID: | iaor1997143 |
Country: | Netherlands |
Volume: | 69 |
Issue: | 2 |
Start Page Number: | 177 |
End Page Number: | 186 |
Publication Date: | Sep 1993 |
Journal: | European Journal of Operational Research |
Authors: | Bikhchandani Sushil, Mamer John W. |
Keywords: | game theory, inventory |
The authors consider the problem of pricing to liquidate inventory in a duopoly. The problem is modelled as a game with complete information. The unique Nash equilibrium for the game, which is also sequential involves mixed strategies for the sellers. The equilibrium extends in a limited fashion to multi-period and many-seller situations.