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Product differentiation and industrial structure
Avner Shaked,John Sutton +1 more
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In this article, the relationship between advertising, R&D, and market structure has been investigated in the context of vertical product differentiation, and a simple unified framework within which to reexplore many issues that arise in considering the relationship.Abstract:
Some recent literature on "vertical product differentiation" has d eveloped the idea that if the nature of technology and tastes in some industry take a certain form, then the industry must necessarily be "concentrated" and must remain so, no matter how large the economy becomes. The present paper develops this idea further and looks at so me of its implications. This approach offers a simple unified framewo rk within which to reexplore many issues that arise in considering th e relationship between advertising, R&D, and market structure. Copyright 1987 by Blackwell Publishing Ltd.read more
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Entry, Exit, Growth, and Innovation over the Product Life Cycle
TL;DR: In this article, a model emphasizing differences in firm innovative capabilities and the importance of firm size in appropriating the returns from innovation is developed to explain the regularities concerning how entry, exit, market structure, and innovation vary from the birth of technologically progressive industries through maturity.
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A Reprise of Size and R & D
Wesley M. Cohen,Steven Klepper +1 more
TL;DR: In this article, a simple model based on the idea of R&D cost spreading was proposed to explain the prior findings about the relationship between the propensity to perform research and the size of a firm.
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The economic analysis of advertising
TL;DR: A comprehensive survey of the economic analysis of advertising can be found in this article, with a focus on positive and normative theories of monopoly advertising, price and non-price advertising, theories of advertising and product quality, and theories that explore the potential role for advertising in deterring entry.
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Text-Based Network Industries and Endogenous Product Differentiation
Gerard Hoberg,Gordon M. Phillips +1 more
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Technology and Market Structure
TL;DR: In this paper, the authors re-examine the relationship between the R&D intensity of an industry and its level of concentration, from the perspective of the Bounds approach to market structure.
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Relaxing price competition through product differentiation
Avner Shaked,John Sutton +1 more
TL;DR: In this paper, the authors present a very particular model of a market equilibrium in which two potential entrants will choose to enter the industry, and both will make positive profits, and they will choose both the specification of their respective products, and their prices.
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On hotelling's "Stability in competition"
TL;DR: In this article, the authors show that the so-called principle of minimum differentiation, as based on Hotelling's 1929 celebrated paper (Hotelling [3]), is invalid and that no equilibrium price solution will exist when both sellers are not far enough from each other.
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Entry deterrence in the ready-to-eat breakfast cereal industry
TL;DR: In this article, the authors present an analysis of the ready-to-eat breakfast cereal industry based on and related to the current antitrust case involving its leading producers, using a spatial competition comparison framework with brands assumed relatively immobile.
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Assessing the potential demand for electric cars
TL;DR: An ordered logit specification for use on ranked individual data is used to analyze survey data on potential consumer demand for electric cars, and results indicate considerable dispersion in individual coefficients.
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Product Differentiation in a Market with Endogenous Sequential Entry
TL;DR: In this paper, the authors construct a descriptive model of a market with differentiated consumers and products in which both prices and product specifications are endogenous and in which entry is endogenous and sequential.