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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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Authors


David P Myatt More by this author
Justin P Johnson More by this author
Volume:
105
Series:
Discussion paper series
Publication date:
2002
URN:
uuid:ccf63d68-85f2-43a0-bd5e-ea5f9bb34f31
Local pid:
ora:1142
Language:
English

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