We analyze the role of quality, which we define as an attribute of a product that increases consumers’ willingness to buy, as a competitive tool in a quality-price setting. We consider an incumbent’s entry-deterrence strategies using quality as a deterrent when faced by a potential entrant....

This paper proposes a strategic reason for a proprietary component supplier to license her technology to a competitor or a manufacturer: her anticipation of the manufacturer's strategic commitment to invest in research and development (R&D). We address this phenomenon with a game theoretic...