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Price patterns in an oligopoly with switching cost and uncertain demand

Zawisza M., Kamiński B.

Operations Research and Decisions

2013

Vol. 23, No. 3

71--89

Characteristics of price patterns have been investigated in an oligopoly market with costs for switching a provider. Two regimes of a company’s access to information have been considered. In the benchmark scenario, firms make decisions based on perfect information about demand. In the other – more realistic scenario – they conduct market research to estimate an unknown demand curve and therefore face uncertainty regarding their profit function, which in turn leads to suboptimal decision making. The authors inspected how a company’s access to information on demand, costs for switching a provider and the rate of market renewal influence price patterns on the market. It has been shown that positive switching cost is a sufficient condition for price dispersion, as well as imperfect information about the company's profit function, e.g. from market research. The average price under the perfect information regime is lower than under market research based price setting, a higher switching cost makes it easier for companies to coordinate their prices and a higher rate of market renewal softens the influence of the switching cost on market price.

Development of freight rates in Polish road transport - can Polish forwarders compete on price with German fowarders?

Platje J.

Zeszyty Naukowe. Logistyka i Transport / Międzynarodowa Wyższa Szkoła Logistyki i Transportu we Wrocławiu

2006

Vol. 2, No. 1

55-61

This article presents research on the development of freight rates in Polish road transport in the next few years. This is very relevant for competition with German companies, as Polish road carriers possess almost 90% of the "Poland-Germany" and "Germany-Poland" transport market. Discussed are the reasons for and level of cost advantage, as well as factors influencing costs in road freight transport (e.g. wages, depreciation, maintenance, taxes, elimination of border controls with Germany, EU regulations and standards, technology, cabtage, human capital). It is concluded that it can be expected that, leaving highly volatile fuel prices out of consideration, during the next couple of years Polish road carriers are likely to keep their cost advantage compared to their German competitors.

Artykuł ten przedstawia badania dotyczące rozwoju stawek przewozowych w polskim transporcie drogowym w ciągu kilku kolejnych lat. Ma to ścisły związek z konkurencją ze strony firm niemieckich, ponieważ polscy przewoźnicy posiadają niemal 90% rynku transportowego w kierunkach Polska-Niemcy i Niemcy-Polska. Dyskusji poddano przyczyny oraz poziom przewagi kosztowej, jak również czynniki wpływające na koszty w transporcie drogowym (np. płace, deprecjacja, konserwacja, podatki, likwidacja kontroli granicznej na granicy z Niemcami, przepisy i standardy Unii Europejskiej, technologia, kabotaż, kapitał ludzki). Na podstawie wniosków można oczekiwać, pomijając wysoce niestabilne ceny paliw, że w ciągu kilku następnych lat polscy przewoźnicy drogowi najpewniej utrzymają przewagę kosztową w porównaniu do firm konkurencyjnych z Niemiec.