Marketing as an entrance barrier into the fashion market

Pedro Cosme da Costa Vieira ()

Industrial Organization from EconWPA

Abstract: In this paper I intend to model a firm decision of entrance into a profitable fashion market where fashion results from the existence of positive interdependence between buyers utility functions. I conclude theoretically that i) when incumbent firm has an aggressive strategy it sets a marketing limit strategy that do not permit the other firm to enter the fashion market and that ii) when incumbent firm accommodates the other firm a la Cournot there is no pure strategy Nash equilibrium. The properties of the model seem to be in accordance with the persistence in time of fashion brands.

Keywords: Fashion; Marketing; Utility interdependence; Entrance barrier (search for similar items in EconPapers)
JEL-codes: L13 M31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-com and nep-cul
Date: 2005-01-17
Note: Type of Document - pdf; pages: 8
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpio:0501008

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