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study investigates how competition may influence duopoly firms' incentive to voluntarily reveal quality information. We show …, sequential disclosure can lead to increasingly softened competition, improving both firm profitability and social welfare. …
Persistent link: https://www.econbiz.de/10008788082
strategic roles of product variety and lead time in the competition. In contrast to the previous literature, we find that … increasing the variety will not intensify the price competition if there is sufficient firm differentiation. Rather, it relieves …
Persistent link: https://www.econbiz.de/10008788134
This paper empirically analyzes the formulation of competitive marketing strategies consisting of product quality levels, promotional expenditures and prices. Using a simultaneous-equation model, we examine the use of prices and promotional spending as signals or indications of product quality,...
Persistent link: https://www.econbiz.de/10008788148
Initial product, distribution, marketing expenditure, and price reactions by incumbents are examined for 115 entrants into oligopolistic markets. The most common reaction pattern is either no reaction or only a single reaction. It is very unusual for entrants to face reactions across the entire...
Persistent link: https://www.econbiz.de/10008788152
This paper analyzes how a firm should adjust its marketing expenditures and its price to defend its position in an existing market from attack by a competitive new product. Our focus is to provide usable managerial recommendations on the strategy of response. In particular we show that if...
Persistent link: https://www.econbiz.de/10008788177
absolute value, but also by its relative value with respect to the competition. For example, the effectiveness of a price cut … develop hypotheses about competition in different segments of the U.S. auto market. To test our hypotheses of competitive … behavior, we estimate a structural model that disentangles the competition effect from the demand and cost effects on prices …
Persistent link: https://www.econbiz.de/10008788187
In this paper, we explore equilibrium pricing strategies in an infinite horizon repeated game for an oligopoly. We model the interactions between three firms in a market of switchers and loyals. Our analysis shows that if, there are sufficiently large number of switchers in the market, the...
Persistent link: https://www.econbiz.de/10008788194
price-based competition with the C2C retailer, while adopting C2C in retaliation would bring down the profits of both the …
Persistent link: https://www.econbiz.de/10008788265
availability of goods at lower prices, an important consequence of forward buying is the decreased intensity of competition between … manufacturers. The decrease in the intensity of competition yields higher profits to the manufacturers as compared to the case where … increases the overall probability of not offering trade deals and leads to decreased intensity of competition. …
Persistent link: https://www.econbiz.de/10008788273
only one firm offers customized products. Finally, we show that customizing products under competition does not lead to a …
Persistent link: https://www.econbiz.de/10008788280