Multiproduct Competition

Richard Gilbert and Carmen Matutes

Annals of Economics and Statistics, 1990, issue 18, 151-163

Abstract: Brand proliferation is examined as an instrument of competition among established firms and as a means to limit entry in a model with both firm and product-specific differentiation. We find that the incentives to proliferate, the credibility of proliferation as an entry barrier, and the welfare properties of the equilibrium depend on the interplay between the extent of firm-specific differentiation and the ability to commit to a restricted product slate.

Date: 1990
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Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:1990:i:18:p:151-163

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