Journal of Political Economy Vol. 102 No. 4 1994
Social Attributes and Strategic Equilibrium: A Restaurant Pricing Game
Abstract
Using a game-theoretic approach, we examine possible equilibrium explanations of the often-observed phenomenon that two neighboring restaurants offering similar menus nevertheless experience vastly different demands. The essential aspect of this analysis is the presence of a consumption externality that makes the popularity itself a factor in the determination of the relative attractiveness of the restaurants.
- DOI
- 10.1086/261956
- Volume
- 102
- Issue
- 4
- Pages
- 822-840
- Language
- en
- Sources
- openalex crossref