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Product Range and Interfirm Competition

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  • Paul W. Dobson
  • Michael Waterson

Abstract

We develop a simple model in which there is both interfirm (or intraproduct) and intrafirm (or interproduct) competition. The purpose is to develop a classificatoy framework in order to understand product-range or diversification decisions alongside conventional competition. The equilibrium outcomes commonly involve a limited range of the available goods being produced. Deterrence equilibria and other strategic actions are also examined. Copyright 1996 The Massachusetts Institute of Technology.

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  • Paul W. Dobson & Michael Waterson, 1996. "Product Range and Interfirm Competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 5(3), pages 317-341, September.
  • Handle: RePEc:bla:jemstr:v:5:y:1996:i:3:p:317-341
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    Cited by:

    1. Allain, Marie-Laure & Chambolle, Claire, 2011. "Anti-competitive effects of resale-below-cost laws," International Journal of Industrial Organization, Elsevier, pages 373-385.
    2. Chisholm, Darlene C. & Norman, George, 2012. "Market access and competition in product lines," International Journal of Industrial Organization, Elsevier, pages 429-435.
    3. Manez, J.A. & Waterson, M., 2001. "Multiproduct Firms and Product Differentiation: a Survey," The Warwick Economics Research Paper Series (TWERPS) 594, University of Warwick, Department of Economics.
    4. Gourieroux, C. & Monfort, A., 2008. "Quadratic stochastic intensity and prospective mortality tables," Insurance: Mathematics and Economics, Elsevier, pages 174-184.
    5. Antonio Cabrales & Giovanni Ponti, 2000. "Implementation, Elimination of Weakly Dominated Strategies and Evolutionary Dynamics," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 3(2), pages 247-282, April.
    6. Nan Xia & S. Rajagopalan, 2009. "Standard vs. Custom Products: Variety, Lead Time, and Price Competition," Marketing Science, INFORMS, pages 887-900.
    7. Dobson, Paul W. & Waterson, Michael, 2007. "The competition effects of industry-wide vertical price fixing in bilateral oligopoly," International Journal of Industrial Organization, Elsevier, pages 935-962.
    8. Rajagopalan, S. & Xia, Nan, 2012. "Product variety, pricing and differentiation in a supply chain," European Journal of Operational Research, Elsevier, pages 84-93.
    9. repec:kap:revind:v:51:y:2017:i:2:d:10.1007_s11151-017-9583-y is not listed on IDEAS
    10. Allain, Marie-Laure & Chambolle, Claire, 2011. "Anti-competitive effects of resale-below-cost laws," International Journal of Industrial Organization, Elsevier, pages 373-385.
    11. Cellini, Roberto & Martorana, Marco Ferdinando & Platania, Felicita, 2014. "The multi-product nature of the firm in the arts sector: A case study on ‘Centro Zo’," MPRA Paper 60677, University Library of Munich, Germany.
    12. Simon P. Anderson & André de Palma, 2003. "Market Performance With Multiproduct Firms," Virginia Economics Online Papers 357, University of Virginia, Department of Economics.
    13. Xu, Xu & Coatney, Kalyn T., 2015. "Product market segmentation and output collusion within substitute products," Journal of Economics and Business, Elsevier, pages 1-15.

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