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Technology and Market Structure in the Defender Model

Author

Listed:
  • Simon Wey
  • Christian Jaag
  • Helmut Dietl
  • Urs Trinkner

Abstract

This paper enhances the defender model by explicitly modeling the cost associated with quality attributes. It considers two firms and two quality attributes which cause fixed and variable cost, respectively, together with the price attribute. Hence, firms compete in three dimensions. The optimal market defense is derived for various market structure and cost configurations. The theoretical findings are then applied to optimal market defense in the liberalized postal sector.

Suggested Citation

  • Simon Wey & Christian Jaag & Helmut Dietl & Urs Trinkner, 2012. "Technology and Market Structure in the Defender Model," Working Papers 0036, Swiss Economics.
    • Handle: RePEc:chc:wpaper:0036
    as

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    More about this item

    Keywords

    Defender model; Market structure;

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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