Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/104549
Authors: 
Müller, Stephan
Götz, Georg
Year of Publication: 
2014
Series/Report no.: 
Discussion Papers, Center for European Governance and Economic Development Research 223
Abstract: 
In this paper, we study the rational for an incumbent to launch a second brand when facing potential entry in a market with quality differentiated products and a fringe producer. Depending on market size, costs for a second brand and a potential entrant's setup cost the incumbent might use a second brand both when deterring and when accommodating entry. The analysis generates predictions about the equilibrium degree of product differentiation, the presence of a multiproduct incumbent, and the determinants of successful entry.
Subjects: 
multiproduct firms
quality competition
vertical product differentiation
entry accommodation
entry deterrence
JEL: 
L13
D43
M31
Document Type: 
Working Paper

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