Product Line Rivalry

James Brander and Jonathan Eaton

Working Paper from Economics Department, Queen's University

Abstract: This paper examines product selection by multi-product firms, taking explicit account of the sequential nature of real decisions: firms choose product lines before the quantity or price rivalry with other firms is resolved. Unlike most previous work, we focus on demand side strategic considerations rather than cost side. We find close substitutes produced by the same firm is a natural outcome, in contrast to conventional wisdom.

Pages: 31
Date: 1982
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:519

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