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Multiproduct Quality Competition: Fighting Brands and Product Line Pruning.

Abstract:

Firms selling multiple quality-differentiated products frequently alter their product lines when a competitor enters the market. We present a model of multiproduct monopoly and duopoly using a general 'upgrades' approach that yields a powerful analytical framework. We provide a simple theoretical explanation for the common strategies of using 'fighting brands' and of product line 'pruning'. We also present a general condition that guarantees that a monopolist will forsake market segmentation ...

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Publisher:
Department of Economics (University of Oxford)
Series:
Discussion paper series
Publication date:
2002-01-01
Language:
English
UUID:
uuid:ccf63d68-85f2-43a0-bd5e-ea5f9bb34f31
Local pid:
ora:1142
Deposit date:
2011-08-15

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