Entry and vertical differentiation (Q1851230)
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scientific article; zbMATH DE number 1845942
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| English | Entry and vertical differentiation |
scientific article; zbMATH DE number 1845942 |
Statements
Entry and vertical differentiation (English)
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16 December 2002
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The optimal entry strategies for different types of experience goods in a dynamic Cournot duopoly with vertically differentiated buyers is considered. The main goal of the article is to obtain a characterization of the features of the new product that lead to a qualitatively different entry strategy. It is shown that a new product that represents a certain improvement to an existing product is launched in the marked at prices above the static equilibrium level and sales quantities below the static level. As a model the unique Markov perfect equilibrium of the infinite horizon game under the strong long run average payoff criterion is used.
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mathematical economics
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game theory
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quantity competition
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vertical differentiation
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Bayesian learning
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Markov perfect equilibrium
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experience goods
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0.8455369472503662
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0.7940319776535034
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0.7625109553337097
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0.758755624294281
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0.7587552070617676
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