Hawks and Doves in Segmented Markets: Profit Maximization with Varying Competitive Aggressiveness
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.
Volume (Year): (2016)
Issue (Month): 121-122 ()
|Contact details of provider:|| Postal: 3, avenue Pierre Larousse, 92245 Malakoff Cedex|
Web page: https://annals.ensae.fr/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:2016:i:121-122:p:45-66. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laurent Linnemer)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.