IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpio/0501008.html
   My bibliography  Save this paper

Marketing as an entrance barrier into the fashion market

Author

Listed:
  • Pedro Cosme Costa Vieira

    (Faculdade de Economia do Porto)

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.

Suggested Citation

  • Pedro Cosme Costa Vieira, 2005. "Marketing as an entrance barrier into the fashion market," Industrial Organization 0501008, EconWPA.
  • Handle: RePEc:wpa:wuwpio:0501008
    Note: Type of Document - pdf; pages: 8
    as

    Download full text from publisher

    File URL: http://econwpa.repec.org/eps/io/papers/0501/0501008.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    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.
    2. Gerard R. Butters, 1977. "Equilibrium Distributions of Sales and Advertising Prices," Review of Economic Studies, Oxford University Press, vol. 44(3), pages 465-491.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Fashion; Marketing; Utility interdependence; Entrance barrier;

    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; Personnel Economics - - Marketing and Advertising - - - Marketing

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:wpa:wuwpio:0501008. 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: (EconWPA). General contact details of provider: http://econwpa.repec.org .

    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 CitEc recognized a reference but did not link an item in RePEc 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 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.