Author: Luca LambertiniPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Endogenous Choice of Capacity and Product Innovation in a Differentiated Duopoly
Author: Luca LambertiniEndogenous Choice of Capacity and Product Innovation in a Differentiated Duopoly
Author: Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
We model a symmetric duopoly where firms choose whether to be quantity setters or price setters by deciding the optimal capacity; undertake R & D activity to determine the degree of differentiation; and finally compete in the market. Two games are proposed, where investment decisions follow different sequences. We assess price and quantity decisions, finding a set of equilibria where the choice of the market variable is affected by both technological commitments. As a result, the acquired wisdom that quantity setting is a dominant strategy for firms, while price setting is a dominant strategy from a social standpoint, may not be confirmed.
Competition and Product Innovation of Intermediaries in a Differentiated Duopoly
Author: Sonja BrangewitzProcess and Product Innovation in a Vertically Differentiated Industry
Author: Emanuele BacchiegaPublisher:
ISBN:
Category :
Languages : en
Pages : 18
Book Description
We examine a vertically differentiated duopoly where firms invest in process and product innovation and then compete in prices under full market coverage. We show that (i) process and product innovation are complements (substitutes) for the low-quality (high-quality) firm; (ii) the firm which is initially more efficient invests more than the rival in process innovation; (iii) if the initial differential between marginal costs is sufficiently high, the demand for the less efficient firm is nil and the duopoly equilibrium does not exist. Finally, we investigate the feasibility of Ramp;D cooperation for process innovation.
Quantity Precommitment and Bertrand Competition Yield Cournot Outcomes
Author: Xiangkang YinPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Using a simple model of two-stage duopoly game, this paper shows that Bertrand-like price competition on a differentiated goods market, following a simultaneous endogenous choice of production capacity, yields the Cournot-like outcomes.
Endogenous Timing and the Choice of Quality in a Vertically Differentiated Duopoly
Author: Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
The endogenous choice of timing is discussed in a vertically differentiated duopoly where quality improvement requires a fixed convex cost. The timing decision concerns the quality stage. Using an extended game with observable delay, it is shown that only simultaneous equilibria can arise. This puts into question the ability of Stackelberg games to describe the entry process.
Discrete Choice Theory of Product Differentiation
Author: Simon P. AndersonPublisher: MIT Press
ISBN: 9780262011280
Category : Business & Economics
Languages : en
Pages : 454
Book Description
"The discrete choice approach provides an ideal framework for describing the demands for differentiated products and can be used for studying most product differentiation models in the literature. By introducing extra dimensions of product heterogeneity, the framework also provides richer models of firm location and product selection."--BOOK JACKET.
Firms` Strategic Decisions Theoretical and Empirical Findings
Author: Kazuhiro OhnishiPublisher: Bentham Science Publishers
ISBN: 1681080389
Category : Business & Economics
Languages : en
Pages : 263
Book Description
This eBook presents recent case studies on firms and their strategy employed in specific scenarios and industries. Readers will find, in this volume, an analysis of oligopolistic industries done by using various economic models. These models attempt to explain changes to the competitive environment owing to strategic firm behavior, that is, on the assumption that firms are able to compete effectively and advantageously against rivals through applying strategic initiatives. This eBook investigates the behavior of profit-maximizing firms as well as labor-managed, state-owned and joint-stock firms. Fifteen chapters present empirical or theoretical findings, and develop the economic analysis of firm behavior.
A Duopoly Model of Endogenous Product Choice
Author: Simon AndersonPublisher:
ISBN:
Category : Competition
Languages : en
Pages : 49
Book Description
Author: Jochen Manegold