Research Article
Pricing Strategy versus Heterogeneous Shopping Behavior under Market Price Dispersion
Figure 1
Responses in optimal price and (expected) profits to changes in cost , price mean , and market size . From blue to red as cost and price mean increase within the range of analysis and with parameter values as in the benchmark case (, ); see Table 1.
(a) Prices versus as increases |
(b) Profits versus as increases |
(c) Prices versus as increases |
(d) Profits versus as increases |