Multiproduct Quality Competition: Fighting Brands and Product Line Pruning.
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 ...Expand abstract
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