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But the price Sequential is paying for the company illustrates how much the appeal of the brand has diminished.
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Nevertheless, for the OEM market, the simultaneous pricing game and the sequential pricing game can both arise and be sustained.
In a controlled laboratory setting, we compare the performance of the simultaneous first-price auction, the sequential first-price auction and the simultaneous descending auction with that of the simultaneous ascending auction.
Sequential price hikes can be attacked as "conscious parallelism," a tacit agreement by an oligopoly to follow a price leader.
Moreover, Sanjo (2009) analyses price choice and sequential price choice simultaneously and shows how the degree of a publicly owned firm's privatization influences social welfare in a mixed duopoly market.
In particular, we shall see from our considerations and examples in the next section that the simultaneous pricing strategies yield higher expected revenues than those under the sequential pricing strategy.
For the ODM market, we show that a sequential pricing game arises as the outcome preferred by the OEM and its ODM.
These conditions are modeled by fuzzy multi-level mixed integer linear programming then converted into an integrated bi-level model in which the inner part makes operational pricing decisions in sequential games and the outer part shapes the network of the chains cooperatively.
We have seen in particular that the seller's simultaneous-pricing strategies yield higher expected revenues than the sequential-pricing strategies.
Seller's revenues are highest when the licenses are sold in a sequential first-price auction, in decreasing order of quality.
As we shall illustrate below, the two prices set in this sequential manner may not maximize the expected overall profit, and thus a sensible strategy for the seller who is not in a rush would be to set both p 0 and p 1 before commencing the initial selling stage.
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