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Journal of Economic Theory
Article . 2002 . Peer-reviewed
License: Elsevier TDM
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Article . 2002
Data sources: zbMATH Open
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Article . 2002
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Entry and Vertical Differentiation

Entry and vertical differentiation
Authors: Dirk Bergemann; Juuso Välimäki;

Entry and Vertical Differentiation

Abstract

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.

Country
United Kingdom
Related Organizations
Keywords

game theory, Bayesian learning, 330, Research exposition (monographs, survey articles) pertaining to game theory, economics, and finance, vertical differentiation, Entry, Duopoly, Quantity Competition, Vertical Differentiation, Bayesian Learning, Markov Perfect Equilibrium, Experimentation, Experience Goods, mathematical economics, experience goods, 2-person games, quantity competition, Auctions, bargaining, bidding and selling, and other market models, Noncooperative games, Markov perfect equilibrium, Applications of game theory, jel: jel:C72, jel: jel:C73, jel: jel:D83, jel: jel:D43

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    selected citations
    These citations are derived from selected sources.
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    20
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Top 10%
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
20
Top 10%
Top 10%
Average
bronze