Colombo, Stefano - In: Economics: The Open-Access, Open-Assessment E-Journal 3 (2009) 2009-33, pp. 1-13
We analyse the effects of predation in a vertical differentiation model, where the high-quality incumbent is able to … aggressive attitude to make predation unprofitable for the incumbent. In this case predation does not occur and the equilibrium … prices are lower than the equilibrium prices which would emerge in a contest of explicitly forbidden predation. Moreover, we …