Judo economics in markets with asymmetric firms

Daniel Cracau

Economics Letters, 2013, vol. 119, issue 1, 35-37

Abstract: I study a market entry game with price competition and perfectly substitutable products. Limiting the initial capacity (Judo economics) is a plausible entry strategy. I show that under asymmetry in production cost or product quality, capacity limitation can become obsolete.

Keywords: Sequential Bertrand competition; Judo economics; Asymmetric firms; Cost; Quality (search for similar items in EconPapers)
JEL-codes: D43 L11 (search for similar items in EconPapers)
Date: 2013
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Working Paper: Judo Economics in Markets with Asymmetric Firms (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:119:y:2013:i:1:p:35-37

DOI: 10.1016/j.econlet.2013.01.016

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