Note---A Numerical Approach to Deriving Long-Run Equilibrium Solutions in Spatial Positioning Models

S. Chan Choi, Wayne S. Desarbo and Patrick T. Harker
Additional contact information
S. Chan Choi: Graduate School of Management, Rutgers University, Newark, New Jersey 07102-1895
Wayne S. Desarbo: Marketing and Statistics Departments, University of Michigan, Ann Arbor, Michigan 48109
Patrick T. Harker: Decision Sciences Department, The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104-6366

Management Science, 1992, vol. 38, issue 1, 75-86

Abstract: Choi, DeSarbo and Harker (1990) have recently proposed a numerical methodology for optimal product positioning and pricing under the assumption that the incumbents react only with price changes in the short run. The current note extends this methodology to include incumbents' long-run strategy of competitive product repositioning, in addition to price reactions. This note also introduces the notion of product relocation cost to the equilibrium analysis, and applies the concept of (full and partial) adjustment processes toward an equilibrium to model various strategic behavior of firms. This methodology is illustrated using an existing set of data collected for a major telecommunication equipment manufacturer.

Keywords: marketing: competitive strategy; product policy; games: noncooperative; programming: variational inequalities (search for similar items in EconPapers)
Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.38.1.75 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:38:y:1992:i:1:p:75-86

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().