Innovation and cooperation under vertical product differentiation
Article Abstract:
A situation where two firms have equal power and control over market decision is analyzed. The decisions include those on scheduling, quality of product development and research activities. This duopolistic environment is characterized by vertical product differentiation and an equilibrium situation that is only partially achieved. It is shown nevertheless that these firms, while initially interacting in a non-cooperative game, will eventually undertake a joint venture in their research efforts regardless of the expected outcome of research activities.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 1995
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Quality improvements and the incentive to leapfrog
Article Abstract:
The effect of changes in research and development (R & D) technology on business enterprises' quality management efforts is examined in a vertically differentiated product market. These firms originally offer vertically differentiated products, and any modification in production technology necessitates adjustment costs of a fixed amount. A low quality enterprise has higher motivation to upgrade the industry by investing in R & D, with the provision that adjustment costs are high enough.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 1997
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Price competition between two international firms facing tariffs
Article Abstract:
The imposition of trade tariffs in a duopolistic situation is analyzed. The two firms involved are assumed to be producing similar products whose prices they dictate and control. The tariff affects not only the protected firm but also the other firm in terms of choice of strategies and actual profits gained. The imperfect competition that exists necessitates the adoption of a hybrid marketing strategy that combines conservative and aggressive policies.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 1995
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