Product Line Rivalry: A Further Analysis

Zhihong Chen () and Zhiqi Chen
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Zhihong Chen: Antai College of Economics & Management, Shanghai Jiao Tong University

No 11-04, Carleton Economic Papers from Carleton University, Department of Economics

Abstract: In this paper we conduct a further analysis on the Brander and Eaton (1984) model of product line rivalry by examining two cases that have not been studied previously. The common feature shared by these two cases is asymmetry between firms. Specifically, we examine situations where either a) the firms have different marginal costs, or b) they choose quantity sequentially. Our analysis shows that each of these asymmetries between firms can lead to market interlacing in equilibrium.

Keywords: Product Line Rivalry; Market Interlacing; Market Segmentation (search for similar items in EconPapers)
JEL-codes: L10 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2011-05-18
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Published: Carleton Economic Papers

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Persistent link: https://EconPapers.repec.org/RePEc:car:carecp:11-04

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