How does firm reaction speed and detection lag impact the
sustainability of cooperative pricing? Why? Examples.
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How does firm reaction speed and detection lag impact thesustainability of cooperative pricing? Why? Examples.
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How does firm reaction speed and detection lag impact the sustainability of cooperative pricing Why Examples Firms practices to facilitate pricing cooperation Firms themselves can facilitate cooperative pricing by Advance announcement of price changes Price leadership MostFavouredCustomer MFC Clauses Uniform delivered prices Strategic use of inventories and order backlogs Advance announcement of price changes In some industries firms will publicly announce the prices they intend to charge at some date in the future Such advance announcements reduce the uncertainty that their rivals will not follow them and it allows firms to renege on price changes that rivals refuse to follow One firm announces its price changes before other firms once the Sun and then the Mirror Happens with television advertising rates Overcomes the problem of coordinating on a focal equilibrium other firms cede control over pricing to a
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