Balachander, Subramanian; Srinivasan, Kannan - In: Management Science 40 (1994) 7, pp. 824-841
entrants and to discourage entry. The market consists of customer segments with different valuations for product quality. We … demonstrate that a higher quality and a higher price of each product in the line convey the firm's advantage to potential … from the line. When product quality change is costly, the superior incumbent continues to select a higher quality and price …
