Product Line Rivalry with Brand Differentiation

Richard Gilbert and Carmen Matutes

Journal of Industrial Economics, 1993, vol. 41, issue 3, 223-40

Abstract: Competition with product rivalry is examined in a model where products are differentiated by both quality and brand name. With no commitment, firms produce a full product line. When firms can commit to restrict their product offerings, firms specialize if the degree of brand-specific differentiation is small and they produce a full product line if brand-specific differentiation is large relative to intrafirm differentiation. Firms may crowd a product space when all competitors would be better-off with specialization. Brand proliferation is a credible entry-deterring strategy if the degree of brand-specific differentiation is not too large. Copyright 1993 by Blackwell Publishing Ltd.

Date: 1993
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Working Paper: Product Line Rivalry with Brand Differentiation (1989)
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