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Pricing strategy and financial policy

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Pricing strategy and financial policy. / Dasgupta, Sudipto; Titman, Sheridan.

In: Review of Financial Studies, Vol. 11, No. 4, 1998, p. 705-737.

Research output: Contribution to journalJournal articlepeer-review

Harvard

Dasgupta, S & Titman, S 1998, 'Pricing strategy and financial policy', Review of Financial Studies, vol. 11, no. 4, pp. 705-737. https://doi.org/10.1093/rfs/11.4.705

APA

Dasgupta, S., & Titman, S. (1998). Pricing strategy and financial policy. Review of Financial Studies, 11(4), 705-737. https://doi.org/10.1093/rfs/11.4.705

Vancouver

Dasgupta S, Titman S. Pricing strategy and financial policy. Review of Financial Studies. 1998;11(4):705-737. https://doi.org/10.1093/rfs/11.4.705

Author

Dasgupta, Sudipto ; Titman, Sheridan. / Pricing strategy and financial policy. In: Review of Financial Studies. 1998 ; Vol. 11, No. 4. pp. 705-737.

Bibtex

@article{f6fa5c8effe3489baf307d6efc602b72,
title = "Pricing strategy and financial policy",
abstract = "Recent empirical evidence indicates that capital structure changes affect pricing strategies. In most cases, prices increase following the implementation of a leveraged buyout of a major firm in an industry, with the more leveraged firm in the industry charging higher prices on average. Notable exceptions exist, however, when the leverage increasing firm's rival is relatively unlevered. The first observation is consistent with a model where firms compete for market share on the basis of price. The second observation can be explained within the context of a Stackelberg model where the relatively unlevered rival acts as the Stackelberg price leader.",
author = "Sudipto Dasgupta and Sheridan Titman",
year = "1998",
doi = "10.1093/rfs/11.4.705",
language = "English",
volume = "11",
pages = "705--737",
journal = "Review of Financial Studies",
issn = "0893-9454",
publisher = "Oxford University Press",
number = "4",

}

RIS

TY - JOUR

T1 - Pricing strategy and financial policy

AU - Dasgupta, Sudipto

AU - Titman, Sheridan

PY - 1998

Y1 - 1998

N2 - Recent empirical evidence indicates that capital structure changes affect pricing strategies. In most cases, prices increase following the implementation of a leveraged buyout of a major firm in an industry, with the more leveraged firm in the industry charging higher prices on average. Notable exceptions exist, however, when the leverage increasing firm's rival is relatively unlevered. The first observation is consistent with a model where firms compete for market share on the basis of price. The second observation can be explained within the context of a Stackelberg model where the relatively unlevered rival acts as the Stackelberg price leader.

AB - Recent empirical evidence indicates that capital structure changes affect pricing strategies. In most cases, prices increase following the implementation of a leveraged buyout of a major firm in an industry, with the more leveraged firm in the industry charging higher prices on average. Notable exceptions exist, however, when the leverage increasing firm's rival is relatively unlevered. The first observation is consistent with a model where firms compete for market share on the basis of price. The second observation can be explained within the context of a Stackelberg model where the relatively unlevered rival acts as the Stackelberg price leader.

U2 - 10.1093/rfs/11.4.705

DO - 10.1093/rfs/11.4.705

M3 - Journal article

VL - 11

SP - 705

EP - 737

JO - Review of Financial Studies

JF - Review of Financial Studies

SN - 0893-9454

IS - 4

ER -