Cost leadership and pricing

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• 作者：Tyagi ; Rajeev K.
• 关键词：Cost structure ; Pricing ; Product positioning ; Oligopoly ; D43 ; L13 ; M31
• 刊名：Economics Letters
• 出版年：2001
• 出版时间：August, 2001
• 年：2001
• 卷：72
• 期：2
• 页码：189-193
• 全文大小：40.4 K

文摘

This paper shows that a cost leader need not have a strategy of pricing lower than its competitors. In particular, if firms first choose product positions (horizontal differentiation) simultaneously and then set prices, then the firm with a cost advantage sets a price higher than its competitors.