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 opportunities and sell but a single product. A number of previously studied issues can be addressed by our model, including inter-temporal price discrimiation and "damaged goods".
Journal of Economics and Management Strategy. 2007. Vol. 4. No. 4. P. 529-562.
Price Discrimination and EU Dairy Policy: An Economic Evaluation of Policy Options /доклад на 10 конгрессе ЕААЕ, Exploring Diversity in the European Agri-Food System, Zaragoza, Spain, 28-31 August 2002
Journal of Political Economy. 1989. Vol. 97. No. 5. P. 1060-1090.
Journal of Political Economy. 1994. Vol. 102. No. 4. P. 653-683.