The case is a continuation of Lesser Antilles Lines (UVA QA-0355) which describes the price competition between two duopolistic shipping companies facing inelastic demand for cargo volume. Customers have inelastic and time-sensitive demand, restricting their strategic possibilities. The fictional case introduces additional pricing instruments to this setup. The duopolists can now offer price guarantees and include most-favored-customer clauses and last-look provisions in their contracts. The case is linked to a web-based simulation exercise that lets students explore the effects of these contractual instruments in a duopoly.
Estimated Submission On |