Quality and competition
Article Abstract:
The relationship between quality and competition is examined with particular focus on the intensity of competition. Formal models of oligopolistic competition are developed to determine whether the intensity of competition increases as the equilibrium levels of quality increase. Three competitive settings are investigated, namely, asymmetric duopoly, symmetric duopoly and symmetric oligopoly. In the first setting, the intrinsic demand potential of the dominant person is reduced; in the second setting, the firms are not allowed to cooperate in determining levels of intensity; and in the third setting, the number of firms increases. The findings indicate that the interpretation of increased competition determines the relation between equilibrium quality and competitive intensity, and that this relationship is dependent upon the values of parameters that describe the industry's cost and demand structure.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Dynamic conjectural variations in a Lanchester oligopoly
Article Abstract:
Dynamic conjectural variations were used in the development of dynamic advertising strategies in the context of a Lanchester oligopoly differential game. This method enables competitors to predict rival responses to changes in market share and possesses the computational qualities of open-loop strategies. This approach was applied to the ready-to-eat cereal industry. In this application, estimation of competitors' dynamic conjectural variations was performed using informal search method. The empirical application demonstrated that advertising strategies that rely on dynamic conjectural variations are more effective than open-loop advertising strategies in explaining the advertising patterns followed by competitors.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
A model for relating advertising media exposures to purchase incidence behavior patterns
Article Abstract:
The effectiveness of television advertising in reaching its target audience is examined on the basis of exposure frequency, exposure probability, sensitivity to advertising in general, sensitivity to specific brands, and purchase patterns. A stochastic model is developed using three alternative sets of advertising exposure behavior assumptions. The strengths and weaknesses of the model are discussed.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1987
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Why do corporations give to charity? Creating and testing workplace strategy
- Abstracts: Coalition formation in standard-setting alliances. Using feature construction to improve the performance of neural networks
- Abstracts: Reexamining a model for evaluating information center success using a structural equation modeling approach. An empirical investigation of web site use using a commitment-based model
- Abstracts: The Balanced Scorecard and Tableau de Bord: translating strategy into action. Can benchmarking give you a competitive edge?
- Abstracts: Values-based management. Voices from the firing line: managers discuss punishment in the workplace. Why Trafalgar was won before it was fought: lessons from resource-based theory