Optimum pricing policy for dynamic markets. Part 2: Competetive case

In this paper we extend the results of the dynamic market optimum pricing policy of monopoly markets, given in Part 1, to the competitive case. We show that the most important contributing factors for differences between static and dynamic, competitive market optimum pricing policy as in the monopoly case are: consumer response time, planning period and the discount rate. Additionally the price of the competitor enters to the decision rule.