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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
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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
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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
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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
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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
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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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Product variety, price elasticity of demand and fixed cost in spatial models
Gu, Yiquan; Wenzel, Tobias - 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/10003894750
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Hotelling competition with multi-purchasing : Time Magazine, Newsweek, or both?
Anderson, Simon P.; Foros, Oystein; Kind, Hans Jarle - 2010
Equilibrium prices behave quite differently if consumers single-purchase (buy either Time Magazine or Newsweek) or if some consumers multi-purchase (buy both). Prices are strategic complements under single-purchase, and increase with magazine quality. In a multi-purchase regime prices are...
Persistent link: https://www.econbiz.de/10003977969
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Demand uncertainty, product differentiation, and entry timing under spatial competition
Ebina, Takeshi; Matsushima, Noriaki; Nishide, Katsumasa - 2017
We investigate the entry timing and location decisions under market-size uncertainty with Brownian motions in a continuous-time spatial competition duopoly model a la d'Aspremont et al. (1979). Under a sequential equilibrium, the threshold of the follower non-monotonically increases in...
Persistent link: https://www.econbiz.de/10011671810
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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/10011421460