Abstract
Imperfectly competitive product markets cannot be informationally efficient as private information has strategic implications interfering with price adjustment. This is illustrated in a duopoly model with sequential price setting where private information either leads to prices not being adjusted to all available information or to adjusted but biased prices.
| Original language | English |
|---|---|
| Pages (from-to) | 245-259 |
| Number of pages | 15 |
| Journal | Scottish Journal of Political Economy |
| Volume | 46 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 1999 |
Keywords
- Competition
- Information system
- Price dynamics