Competitive Product Positioning and Pricing under Brand Loyalty
Rickard Enström and
Subhadip Ghosh ()
Indian Economic Review, 2016, vol. 51, issue 1, 69-81
We analyze the pure strategy equilibrium in prices and the corresponding equilibrium product differentiation in a two-stage linear spatial competition duopoly model with quadratic transportation costs. Both firms have segments of brand loyal and non-brand loyal consumer segments, with the two firms primarily competing on the brand switching segment. A comparative statics analysis is undertaken, looking at the impact of a change in size, presence, and asymmetry of the brand loyal segments.
Keywords: Product Differentiation; Spatial Competition; Brand Loyalty; Pricing (search for similar items in EconPapers)
JEL-codes: D40 R32 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:dse:indecr:0111
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