publication . Article . 1989

Product Assortment in a Triopoly

Steven M. Shugan;
Open Access
  • Published: 01 Jan 1989 Journal: Management Science, volume 35, issue 3 March, pages 304-320
Abstract
Producers of super-premium ice cream, such as Haagen-Dazs, offer a smaller assortment of flavors than the producers of lesser quality ice cream. Examples of this phenomenon can be found in other industries as well. In many industries, the producers of higher-quality products offer a smaller assortment of flavors, colors, sizes, patterns, textures, fragrances, tones, styles, models, designs, types or other options. This paper explores when and why producers of super-premium products should find it profitable to offer a smaller assortment than the producers of nonpremium products. We derive a Nash equilibrium both on prices and product assortments for a triopoly. ...
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Subjects
arXiv: Physics::Physics and Society
free text keywords: marketing, competition, Management Science and Operations Research, Strategy and Management, Microeconomics, Ice cream, Economics, Market potential, Nash equilibrium, symbols.namesake, symbols
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