Vertical Differentiation : Entry and Market Coverage with Multiproduct Firms PDF Download

Author: Constantatos, Christos
Publisher: Québec : Direction de la recherche, Faculté des sciences de l'administration, Université Laval
ISBN:
Category :
Languages : en
Pages : 31

View

Book Description

Author: Luca Lambertini
Publisher: Edward Elgar Publishing
ISBN: 9781781958315
Category : Business & Economics
Languages : en
Pages : 240

View

Book Description
'This is a high-quality book on an important and central topic in the theory of industrial organisation. It is a cohesive and extremely well written volume which is destined to become a standard work on the subject.' - Mark Casson, University of Reading, UK This original new book offers a comprehensive and engaging perspective on the theory of vertical differentiation. It enables the reader to grasp the key concepts and effects that product quality has both on firms' behaviour and market structure, and the ways in which this relationship has evolved. With contributions from prominent figures in the field, the book investigates a number of important topics, such as the choice of the optimal product range, profit sharing, the existence of equilibrium in duopoly games, positional effects attached to status goods, international trade, collusion, advertising and the dynamics of capital accumulation for quality improvement and product innovation. Using both static and dynamic approaches, these aspects are assessed in relation to the manifold issues of regulation, competition policy and trade policy. Product differentiation and its influence on consumer behaviour and the performance of firms is a core topic in the existing literature in the fields of industrial organization, international trade and economic growth. This book will be an essential read for researchers, students and professional scholars working in these areas, especially those with an interest in antitrust regulation.

Author: Christos Constantatos
Publisher:
ISBN:
Category : Barriers to entry (Industrial organization)
Languages : en
Pages : 0

View

Book Description
Next we combine our previous results to examine whether an entry threat will induce a multiproduct monopolist to cover any parts of the market he/she would choose to leave unserved in the absence of such threat. We find that there are many cases where the uncovered market result is robust to the threat of entry.

Author: John Beath
Publisher: Cambridge University Press
ISBN: 9780521335522
Category : Business & Economics
Languages : en
Pages : 220

View

Book Description
There are few industries in modern market economies that do not manufacture differentiated products. This book provides a systematic explanation and analysis of the widespread prevalence of this important category of products. The authors concentrate on models in which product selection is endogenous. In the first four chapters they consider models that try to predict the level of product differentiation that would emerge in situations of market equilibrium. These market equilibria with differentiated products are characterised and then compared with social welfare optima. Particular attention is paid to the distinction between horizontal and vertical differentiation as well as to the related issues of product quality and durability. This book brings together the most important theoretical contributions to these topics in a succinct and coherent manner. One of its major strengths is the way in which it carefully sets out the basic intuition behind the formal results. It will be useful to advanced undergraduate and graduate students taking courses in industrial economics and microeconomic theory.

Author:
Publisher:
ISBN:
Category : Electronic journals
Languages : en
Pages : 1000

View

Book Description

Author: Michele Campagna
Publisher: CRC Press
ISBN: 1420037846
Category : Nature
Languages : en
Pages : 557

View

Book Description
GIS for Sustainable Development examines how GIS applications can improve collaboration in decision making among those involved in promoting sustainable development. This volume reviews leading GIScience, providing an overview of research topics and applications that enable GIS newcomers and professionals to apply GIScience methods to susta

Author: Marco Di Cintio
Publisher:
ISBN:
Category :
Languages : en
Pages : 21

View

Book Description
This paper analyzes the price-setting behavior of multiproduct firms in a differentiated product market. The structure considered is one where large companies offer either a set of close substitutes (market segmentation) or a set of distant substitutes (market interlacing). The modelling strategy of the paper is to allow for two different elasticities of substitution: the intra-company elasticity of substitution and the inter-company elasticity of substitution. The key feature of the model is the possibility for multiproduct companies to choose their optimal internal organizational structure, according to the relative size of these two parameters. In order to maximize profits, each company may either set prices centrally, or alternatively it may assign an independent product manager to run each division. In other words, product managers of the same company may behave either independently or cooperatively. While the model does not consider either the proliferation or the product-line selection decisions, it deals with multiproduct frms price decisions under oligopolistic competition making use of conjectural variations. Its main purpose has been to provide a micro-founded answer about the question of whether and when a system of independent product managers (decentralized decisions) is better than a mechanism with a centralized general direction. Coordination is always profitable under market segmentation; while under market interlacing, the strategy of relying on independent product managers is profitable when the standard monopolistic competition arises; it may also be profitable with oligopolistic (Bertrand) competition under some assumptions.

Author: Xin-She Yang
Publisher: Springer Nature
ISBN: 9819932432
Category : Technology & Engineering
Languages : en
Pages : 1102

View

Book Description
This book gathers selected high-quality research papers presented at the Eighth International Congress on Information and Communication Technology, held at Brunel University, London, on 20–23 February 2023. It discusses emerging topics pertaining to information and communication technology (ICT) for managerial applications, e-governance, e-agriculture, e-education and computing technologies, the Internet of Things (IoT) and e-mining. Written by respected experts and researchers working on ICT, the book offers a valuable asset for young researchers involved in advanced studies. The work is presented in four volumes.

Author: Yong-Hwan Noh
Publisher:
ISBN:
Category :
Languages : en
Pages : 218

View

Book Description
This dissertation explores models of heterogeneous product markets that rely on the "vertical product differentiation" formulation. The demand structure applied here is the covered-market configuration under the vertical product differentiation. With this specification, product market equilibria of the monopoly and duopoly market are derived. In particular, parameter restrictions on the degree of relative consumer heterogeneity associated with the covered-market setting are identified and used to interpret analytical results. Based on the specified demand structure, I revisit two industrial organization topics from the perspectives of vertical product differentiation. The first essay analyzes the entry of a new product into a vertically differentiated market where an entrant and an incumbent compete in prices. Many models on strategic entry deterrence deal with "limit quantities" as the established firm's strategic tool to deter or accommodate entry. Here, however, the entry-deterrence strategies of the incumbent firm rely on "limit qualities". With a sequential choice of quality, quality-dependent marginal production cost, and a fixed entry cost, I relate the entry-quality decision and the entry-deterrence strategies to the level of an entry cost and the degree of consumer heterogeneity. In particular, the incumbent influences the quality choice of the entrant by choosing its quality level before the entrant. This allows the incumbent to "limit" the entrant's entry decision and quality levels. Quality-dependent marginal production costs in the model entail the possibility of inferior-quality entry as well as the incumbent's aggressive entry-deterrence strategies by increasing its quality level towards potential entry. Welfare evaluation confirms that social welfare is not necessarily improved when entry is encouraged rather than deterred. The second essay is motivated by some specific economic questions that have arisen with the introduction of 'genetically modified' (GM) agricultural products. A duopoly market-entry model associated with the vertical product differentiation is developed to show how the existence of segregation costs biases the firm's quality choice behavior. Thus, the key factor of the model is the cost of segregation activities that are necessary to distinguish GM products from non-GM products. With an increasing and convex cost of quality, the model predicts that the entrant firm has an increased incentive to enter the market with a low-quality good to reduce production costs if segregation costs are sufficiently high. When consumers are homogeneous enough, however, entry may occur with the high-quality good.

Author: George Norman
Publisher: Edward Elgar Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 624

View

Book Description
This volume brings together significant articles which have appeared between 1971 and 1997, analyzing the application and effects of price discrimination.