Technology and Market Structure in the Defender Model

This paper enhances the defender model by explicitly modeling the cost associated with quality attributes. It considers two firms and two quality attributes which cause fixed and variable cost, respectively, together with the price attribute. Hence, firms compete in three dimensions. The optimal market defense is derived for various market structure and cost configurations. The theoretical findings are then applied to optimal market defense in the liberalized postal sector.

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Year of publication:	2012-07
Authors:	Wey, Simon ; Jaag, Christian ; Dietl, Helmut ; Trinkner, Urs
Institutions:	Swiss Economics
Subject:	Defender model \| Market structure

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Series:	Working Papers. - ISSN 1664-333X.
Type of publication:	Book / Working Paper
Notes:	Number 0036
Classification:	M31 - Marketing ; L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms
Source:	RePEc - Research Papers in Economics

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