The study of equilibrious discount rates of commodities under competition

The article analyses the equilibrious discount rates of the two commodities whose linear demands are interdependent under rival’s constraint.The result shows that the equilibrious discount rates are not only related to their demand functions but also with their initial prices.The equilibrious discount rate increases when the effect of rival’s price on its quantity of sale becomes greater and the two commodities are substitutive and the else conditions ar the same.