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The Double Marginal Effect between Established National Brands and Emerging Brands

Yuchen Zhu ()
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Yuchen Zhu: Jilin University of Finance and Economics, School of Economics

A chapter in Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024), 2024, pp 210-216 from Springer

Abstract: Abstract Based on the double marginal effect model caused by the joint venture of MOUTAI and Luckin, a sequential game model is established to consider whether to joint venture. In the context of the development of the market by various brands, a horizontal difference model is established to explore the optimal decision of the new and old brands to joint venture and the impact on the two brands. The main factors affecting the brand to expand the specific market are investigated. The conclusion shows that the joint venture of the new brand (Luckin) and the old brand (MOUTAI) is a win-win decision, which promotes the understanding of the young people to MOUTAI, broadens the MOUTAI (old brand) in the dynamic main consumer market, improves the sales volume and profit of Luckin, and finally weakens the double marginal effect, improves the living environment of the new and old brands, and improves the viability.

Keywords: joint venture; double marginal effect; horizontal difference model (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-506-5_24

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DOI: 10.2991/978-94-6463-506-5_24

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