Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/68655
Authors: 
Peitz, Martin
Year of Publication: 
1996
Series/Report no.: 
Reihe Ökonomie / Economics Series, Institut für Höhere Studien (IHS) 37
Abstract: 
An oligopolistic market with vertical product differentiation is parametrized in cost parameters. This allows me to study the impact of the technology of the firms (cost parameters) on market structure, conduct, and performance. Firms which differ only by the order of the sequential move to choose a quality use sophisticated entry deterring or entry accomodating strategies. I show that infinitesimal changes in the cost parameters can generate discontinuities in market profits. In particular, higher entry costs can lead to a more competitive outcome.
Subjects: 
entry deterrence
vertical product differentiation
sequential quality choice
barriers of entry
JEL: 
L13
Document Type: 
Working Paper

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