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presence of <i>competition</i> and <i>negotiations</i>. In other words, does low cost outsourcing always lead to a win … endogeneity of disagreement payoffs in our model highlights the importance of modeling firm negotiations under competition …
Persistent link: https://www.econbiz.de/10010990437
In this paper we study retail price promotions and manufacturer trade deals in markets with multiproduct retailers. We find that in situations where retailers carry more than one competing brand, the promotions across brands can be positively or negatively correlated depending on the structure...
Persistent link: https://www.econbiz.de/10009208971
This paper studies the impact of competition on a firm's choice of technology (product-flexible or product … respond to a given flexibility premium. We show that the firms may respond to competition by adopting a technology which is … always the best response to competition--flexible and dedicated technologies may coexist in equilibrium. We demonstrate that …
Persistent link: https://www.econbiz.de/10009208989
In this paper, we present a signalling-based explanation for the empirical phenomenon that a longer warranty may be offered by a product with lower quality. Our explanation hinges on differences in consumer knowledge about reliability of established and newer products. In a product market where...
Persistent link: https://www.econbiz.de/10009209028
This paper considers optimal positioning, advertising, and pricing strategies for a firm contemplating entry in a market dominated by an entrenched competitor. Drawing on behavioral research on consumer preference formation, we develop an individual-level model that reflects differing consumer...
Persistent link: https://www.econbiz.de/10009209177
A well-known result in inventory theory is that physical centralization of stocks in a system with multiple retailers decreases total costs and increases total profits for the retailers. However, does this centralization also benefit the manufacturer, whose goods the retailers stock, when...
Persistent link: https://www.econbiz.de/10009209255
An empirical analysis indicates that the order of entry of a brand into a consumer product category is inversely related to its market share. Market share is modeled as a log linear function of order of entry, time between entries, advertising, and positioning effectiveness. The coefficients of...
Persistent link: https://www.econbiz.de/10009209320
, cannot be reduced. Our model allows a manager to account for potential competition, either substitute or complementary, by … increases in the expected level of substitute (complementary) competition making the firm less (more) likely to adopt the …
Persistent link: https://www.econbiz.de/10009209371
We analyze a duopoly through a differential game, in which the players set prices as functions of time. Under reasonable assumptions, we find that prices first decline, then increase. The market share of the biggest firm grows initially but decreases later. It is demonstrated that a firm may...
Persistent link: https://www.econbiz.de/10009214052
Companies in a variety of industries (e.g., airlines, hotels, theaters) often use last-minute sales to dispose of unsold capacity. Although this may generate incremental revenues in the short term, the long-term consequences of such a strategy are not immediately obvious: More discounted...
Persistent link: https://www.econbiz.de/10009214098