Entry and vertical differentiation
type: Item
instance of: scholarly article
title: Entry and vertical differentiation
zbMATH Open document ID: 1037.91034
author: Dirk Bergemann
author: Juuso Välimäki
published in: Journal of Economic Theory
publication date: 2002-12-16T00:00:00Z
full work available at URL: d1277.pdf
review text: 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.
reviewed by: Sergei Georgievich Zhuravlev
Mathematics Subject Classification ID: 91B26
Mathematics Subject Classification ID: 91A80
Mathematics Subject Classification ID: 91-02
Mathematics Subject Classification ID: 91A10
Mathematics Subject Classification ID: 91A05
zbMATH DE Number: 1845942
zbMATH Keywords: mathematical economics
zbMATH Keywords: game theory
zbMATH Keywords: quantity competition
zbMATH Keywords: vertical differentiation
zbMATH Keywords: Bayesian learning
zbMATH Keywords: Markov perfect equilibrium
zbMATH Keywords: experience goods
MaRDI profile type: Publication
OpenAlex ID: W2171639082
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DOI: 10.1006/JETH.2001.2865
description: scientific article; zbMATH DE number 1845942