Vertical Differentiation and Entry Deterrence: A Reconsideration
Lander Beloki and
José María Usategui Díaz de Otalora
No 1988-088X, DFAEII Working Papers from University of the Basque Country - Department of Foundations of Economic Analysis II
Abstract:
In this work we emphasize why market coverage should be considered endogenous for a correct analysis of entry deterrence in vertical differentiation models and discuss the implications of this endogeneity for that analysis. We consider contexts without quality costs and also contexts with convex fixed quality costs.
Keywords: vertical differentiation; market coverage; entry deterrence; quality competition (search for similar items in EconPapers)
Date: 2005-01
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Dpto. de Fundamentos del Análisis Económico II, = Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain
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