In this paper, we consider an incumbent firm facing potential entry in a vertical differentiation model a la Mussa and … incentive to adopt a multi-product strategy in order to face entry, in a natural duopoly case. It turns out that this strategy …

demonstrate that divide & conquer strategies are present in equilibrium. Finally, we study entry by an inferior-quality platform … and entry by a superior-quality platform to conclude that, in both cases, the entry deterrence strategy can be sustain. We … conclude that, under the presence of inter-group externalities, the entry deterrence strategy occurs when price competition is …

structure of firms is studied in a vertically differentiated duopoly with market entry. With fixed costs of quality, natural … monopoly and entry deterrence occurs at lower entry costs and incumbent profit is higher. With marginal costs of quality …, natural monopoly occurs at higher entry costs or not at all. Deterrence occurs at higher entry costs for mild perceptual …