Download This PaperViscous Demand
27 Pages Posted: 23 Oct 2008
Date Written: August 1999
Abstract
In many markets, demand adjusts slowly to changes inprices, i.e., demand is "viscous." For such a market, the time path of a firm'sprices acquires added significance, compared with the case of instantaneousdemand response. In this paper I explore some problems in strategic dynamicpricing of a service, in the presence of viscous demand, for simple models of amonopoly and a duopoly.
Suggested Citation: Suggested Citation
Radner, Roy, Viscous Demand (August 1999). NYU Working Paper No. IS-99-04, Available at SSRN: https://ssrn.com/abstract=1288440
Roy Radner (Contact Author)
Leonard N. Stern School of Business - Department of Economics ( email )
44 West Fourth Street, 7-180
New York, NY 10012
United States
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