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Product Line Rivalry with Brand Differentiation

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  • Gilbert, Richard J.
  • Matutes, Carmen

Abstract

Competition with product rivalry is examined in a model where products are differentiated by both quality and brand name. With no commitment, firms produce a full product line. When firms can commit to restrict their product offerings, firms specialize if the degree of brand-specific differentiation is small and they produce a full product line if brand-specific differentiation is large relative to intrafirm differentiation. Firms may crowd a product space when all competitors would be better-off with specialization. Brand proliferation is a credible entry-deterring strategy if the degree of brand-specific differentiation is not too large. Copyright 1993 by Blackwell Publishing Ltd.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Gilbert, Richard J. & Matutes, Carmen, 1989. "Product Line Rivalry with Brand Differentiation," Department of Economics, Working Paper Series qt1nr3k6nk, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    • Handle: RePEc:cdl:econwp:qt1nr3k6nk
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