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Marketing as an entrance barrier into the fashion market

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Author Info
Pedro Cosme Costa Vieira (Faculdade de Economia do Porto)

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Abstract

In this paper I intend to model a firm decision of entrance into a profitable fashion market where fashion results from the existence of positive interdependence between buyers utility functions. I conclude theoretically that i) when incumbent firm has an aggressive strategy it sets a marketing limit strategy that do not permit the other firm to enter the fashion market and that ii) when incumbent firm accommodates the other firm a la Cournot there is no pure strategy Nash equilibrium. The properties of the model seem to be in accordance with the persistence in time of fashion brands.

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File URL: http://129.3.20.41/eps/io/papers/0501/0501008.pdf
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Publisher Info
Paper provided by EconWPA in its series Industrial Organization with number 0501008.

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Length: 8 pages
Date of creation: 17 Jan 2005
Date of revision:
Handle: RePEc:wpa:wuwpio:0501008

Note: Type of Document - pdf; pages: 8
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Web page: http://129.3.20.41

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Related research
Keywords: Fashion; Marketing; Utility interdependence; Entrance barrier;

Find related papers by JEL classification:
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Granovetter, Mark & Soong, Roland, 1986. "Threshold models of interpersonal effects in consumer demand," Journal of Economic Behavior & Organization, Elsevier, vol. 7(1), pages 83-99, March. [Downloadable!] (restricted)
  2. Butters, Gerard R, 1977. "Equilibrium Distributions of Sales and Advertising Prices," Review of Economic Studies, Blackwell Publishing, vol. 44(3), pages 465-91, October. [Downloadable!] (restricted)
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