Two retailers

Three retailer or more

convergence

May not converge, i.e. switch at two fixed prices in Feasible-Price interval may converge to one stable price.

Converge to one stable price

Sensitivity to

the increment of the price

The final price tends to increase if one retailer increases its initial price.

The final price may not change if the lowest initial price is not changed

Sensitivity to

the decrement

of the price

The final price tends to decrease if one retailer decreases its initial price.

The final price tends to decreases.

When more retailers are involved, the tendency is more significant.