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Strategic perils of outsourcing : sourcing strategy and product positioning

Matsushima, Noriaki; Pan, Cong - 2016

Although outsourcing input production has long been considered as an important approach to help downstream … manufacturers enhance structural efficiency, we provide a theoretical explanation for why outsourcing may negatively affect … sourcing and product positioning strategies. We show that when inputs from outside suppliers are not perfectly compatible with …

Persistent link: https://www.econbiz.de/10011549462

Product Differentiation and Firm Profits in a Hotelling Model with Endogenous Timing

Yoshida, Shohei - 2016

This paper revisits the relationship between product differentiation and firm profits. We analyze a Hotelling duopoly with endogenous timing choice. There exists an equilibrium where an efficient firm becomes the leader whereas an inefficient firm follows. We show that, when the cost difference...

Persistent link: https://www.econbiz.de/10014035160

Product differentiation and entry timing in a continuous time spatial competition model

Ebina, Takeshi; Matsushima, Noriaki; Shimizu, Daisuke - 2014

We extend the well-known spatial competition model (d'Aspremont et al., 1979) to a continuous time model in which two firms compete in each instance. Our focus is on the entry timing decisions of firms and their optimal locations. We demonstrate that the leader has an incentive to locate closer...

Persistent link: https://www.econbiz.de/10010415920

Uncertainty in Spatial Duopoly with Possibly Asymmetric Distributions : A State Space Approach

Meagher, Kieron - 2008

In spatial competition iuml;B01rms are likely to be uncertain about consumer locations when launching products either because of shifting demographics or of asymmetric information about preferences. Realistically distributions of consumer locations should be allowed to vary over states and need...

Persistent link: https://www.econbiz.de/10012724699

Optimal Product Variety in a Hotelling Model

Meagher, Kieron - 2011

In Hotelling style duopoly location games the product variety (or firm locations) is typically not socially optimal. This occurs because the competitive outcome is driven by the density of consumers at the margin while the socially optimal outcome depends on the whole distribution of consumer...

Persistent link: https://www.econbiz.de/10014043296

Uncertain Spatial Demand and Price Flexibility : A State Space Approach to Duopoly

Meagher, Kieron - 2011

In spatial competition firms are likely to be uncertain about demand when launching products either because of shifting demographics or of asymmetric information about preferences. This paper considers two types of prices: those set on prior information and flexible prices which adjust across...

Persistent link: https://www.econbiz.de/10013128129

Transparency and tacit collusion in a differentiated market

Schultz, Christian - 2002

This paper investigates the effects on tacit collusion of increased market transparency on the consumer side of a market in a differentiated Hotelling duopoly. Increasing market transparency increases the benefits to a firm from underbutting the collusive price. It also decreases the punishment...

Persistent link: https://www.econbiz.de/10011409987

Product differentiation and entry timing in a continuous-time spatial competition model with vertical relations

Ebina, Takeshi; Matsushima, Noriaki - 2017

We study the entry timing and location decisions of two exclusive buyer-supplier relationships in a continuous-time spatial competition model. In each relationship, the firms determine their entry timing and location, and negotiate a wholesale price through Nash bargaining. Then, the downstream...

Persistent link: https://www.econbiz.de/10011723843

Horizontal product differentiation with limited attentive consumers

Saur, Marc P.; Schlatterer, Markus G.; Schmitt, … - 2019

We analyze the effects of consumers' limited attention on welfare in a model of horizontal product differentiation. We present a novel approach of modeling limited attention: an attention radius. Each consumer only notices goods that are within her attention radius, i.e., goods that are...

Persistent link: https://www.econbiz.de/10011963815

Product variety, price elasticity of demand and fixed cost in spatial models

Gu, Yiquan (contributor); Wenzel, Tobias (contributor) - 2009

This paper explores the implications of price-dependent demand in spatial models of product differentiation. We introduce consumers with a quasi-linear utility function in the framework of the Salop (1979) model. We show that the so-called excess entry theorem relies critically on the assumption...

Persistent link: https://www.econbiz.de/10003811814

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