Possible market entry of a firm with an additive manufacturing technology

Richard F. Hartl and Peter Kort

International Journal of Production Economics, 2017, vol. 194, issue C, 190-199

Abstract: One of the principle characteristics of additive manufacturing is that customers get access to their own design, i.e., they need not choose from a small number of standard products. The paper considers a framework where an incumbent with a standard technology produces a limited number of standard products, and faces a potential entrant with an additive manufacturing technology. We find that three different outcomes are possible: the incumbent accommodates entry while producing just one product, blockades/deters entry, or it has to leave the market due to too heavy competition from the entrant. We give conditions under which each of these outcomes will occur.

Keywords: Market entry game; Entry deterrence; Entry accommodation; Hotelling line; Additive manufacturing (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:194:y:2017:i:c:p:190-199

DOI: 10.1016/j.ijpe.2017.06.013

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