Hawks and Doves in Segmented Markets: Profit Maximization with Varying Competitive Aggressiveness

Faucons et colombes dans les marchés segmentés: maximisation des bénéfices avec une agressivité concurrentielle variable

Claude d'Aspremont, Rodolphe Dos Santos Ferreira and Jacques Thépot
Additional contact information
Jacques Thépot: LARGE - Laboratoire de recherche en gestion et économie - UNISTRA - Université de Strasbourg - L'europe en mutation : histoire, droit, économie et identités culturelles - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: We consider a duopoly, each firm supplying a captive and a contested segment. Starting from two extreme formulations of the profit maximization objective, we introduce a parameterized class of managerial objective functions, involving price-quantity pairs as strategic variables but corresponding to different managerial attitudes. By specifying the parameters of competitive aggressiveness, we recover classical competition regimes. The model is extended to analyze the strategic choice of managerial aggressiveness, and to examine the implications of changes in the intensity of competition. In order to endogenize the competitive aggressiveness parameters, a more primitive price-quantity model introduces the possibility of consumer price discounting.

Keywords: Competitive Aggressiveness; Segmented Markets; Competition Regimes; Delegation; Consumer Price Discounting (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Published in Annals of Economics and Statistics, 2016, 121/122, pp.45-66. ⟨10.15609/annaeconstat2009.121-122.45⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Hawks and Doves in Segmented Markets: Profit Maximization with Varying Competitive Aggressiveness (2016)
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:hal:journl:hal-01723731

DOI: 10.15609/annaeconstat2009.121-122.45

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().