IDEAS home Printed from https://ideas.repec.org/a/bla/jindec/v36y1987i1p19-34.html
   My bibliography  Save this article

Cost-Raising Strategies

Author

Listed:
  • Salop, Steven C
  • Scheffman, David T

Abstract

This paper studies a variety of strategies by which firms could disadvantage rivals by raising their costs. In this paper, the authors show that strategies designed to raise r ivals' costs have a number of advantages over predatory pricing: they are credible; do not necessarily require the victim to exit; and do not necessarily require the existence of classical market power. The paper sets up a general model; proves a number of general results; an d then applies the model to specific strategies involving "overbuyin g" inputs and vertical integration. Copyright 1987 by Blackwell Publishing Ltd.

Suggested Citation

  • Salop, Steven C & Scheffman, David T, 1987. "Cost-Raising Strategies," Journal of Industrial Economics, Wiley Blackwell, vol. 36(1), pages 19-34, September.
  • Handle: RePEc:bla:jindec:v:36:y:1987:i:1:p:19-34
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0022-1821%28198709%2936%3A1%3C19%3ACS%3E2.0.CO%3B2-R&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jindec:v:36:y:1987:i:1:p:19-34. 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: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821 .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.