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Termination of Price Wars

A Signaling Approach

  • Authors
  • Michael Bungert

Table of contents

About this book

Introduction

Price competition frequently degenerates into its most devastating form: a price war. As the general consensus is that price wars substantially damage the firms involved a new approach is necessary to put an end to these conflicts.

Michael Bungert investigates the possibility to terminate (non-beneficial) price wars through appropriate signals. In an experiment, he analyzes the effect of different types of signals such as switch-blocking intent, reciprocity, co-operation, weakness, and hostility on the price reaction behaviour of a competitor. The author shows the consequences of marketing moves such as individual refunding guarantees, coupons, image advertising, price-matching guarantees, verbal statements and unilateral price increase for the generation of the mentioned signals. He demonstrates that all signal types show a considerable effect on the probability of a co-operative price reaction.

Keywords

Preiskrieg Preiswettbewerb Regression, logistische Signaling Spieltheorie conflict conflict situation data analysis design game theory marketing pricing probability social psychology Ökonomie, experimentelle

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-322-81625-2
  • Copyright Information Gabler Verlag | Springer Fachmedien Wiesbaden GmbH, Wiesbaden 2003
  • Publisher Name Deutscher Universitätsverlag
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-8244-7956-6
  • Online ISBN 978-3-322-81625-2
  • Buy this book on publisher's site
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