Jean-Marc, Bonnisseau; Rim, Lahmandi-Ayed - In: The B.E. Journal of Theoretical Economics 6 (2006) 1, pp. 1-14
In this paper, we consider an incumbent firm facing potential entry in a vertical differentiation model a la Mussa and Rosen where consumers differ only by their intensity of preference for quality. We ask whether the incumbent firm has the incentive to adopt a multi-product strategy in order to...