Firm Price Policy Optimization under the Competition

Student: Vorslov Alexander

Faculty: International College of Economics and Finance

Educational Programme: Double degree programme in Economics of the NRU HSE and the University of London (Bachelor)

Year of Graduation: 2017

This paper investigates the optimal behavior of the firm under the competition. The analysis is conducted on a highly competitive market, namely, the taxi market of Moscow. This paper shows, that the competition of the aggregators in the Moscow taxi market is oligopolistic, and that each aggregator can earn positive profits. The optimal consumer price is also analyzed, and it is shown that the price on this market should be dynamic and should respond to changes in the supply and in the demand.

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