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Multiproduct Quality Competition: Fighting Brands and Product Line Pruning

Обновлено: 09-12-2010


Тематические разделы:

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".
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Jeremy I. Bulow, Donald John Roberts
Journal of Political Economy. 1989.  Vol. 97. No. 5. P. 1060-1090. 
Severin Borenstein, Nancy L. Rose
Journal of Political Economy. 1994.  Vol. 102. No. 4. P. 653-683.