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Strategic Product Choice in Differentiated Markets

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  • Bhatt, Swati

Abstract

Widespread diversification of firms compels viewing them as a portfolio of activities rather than as entities competing independently in separate markets. This paper posits that product specification or product choice is a distinct strategic variable. In particular, the optimal relationship between the new and existing products of an oligopolistic firm is examined. In the absence of market size inequalities, clustering or market invasion is shown to be the Nash solution to the product-choice game when firms play strategically. Copyright 1987 by Blackwell Publishing Ltd.

Suggested Citation

  • Bhatt, Swati, 1987. "Strategic Product Choice in Differentiated Markets," Journal of Industrial Economics, Wiley Blackwell, vol. 36(2), pages 207-216, December.
    • Handle: RePEc:bla:jindec:v:36:y:1987:i:2:p:207-16
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    Cited by:

    1. Roberto Fontana & Lionel Nesta, 2007. "Product entry in a fast growing industry: The LAN switch market," Springer Books, in: Uwe Cantner & Franco Malerba (ed.), Innovation, Industrial Dynamics and Structural Transformation, pages 87-106, Springer.
    2. Sarangi, Subrat & Chakraborty, Abhishek & Triantis, Konstantinos P., 2021. "Multimarket competition effects on product line decisions – A multi-objective decision model in fast moving consumer goods industry," Journal of Business Research, Elsevier, vol. 133(C), pages 388-398.
    3. Zhihong Chen & Zhiqi Chen, 2014. "Product Line Rivalry and Firm Asymmetry," Journal of Industrial Economics, Wiley Blackwell, vol. 62(3), pages 417-435, September.
    4. Zhihong Chen & Zhiqi Chen, 2011. "Product Line Rivalry: A Further Analysis," Carleton Economic Papers 11-04, Carleton University, Department of Economics.
    5. Fontana, Roberto & Vezzulli, Andrea, 2016. "Technological leadership and persistence in product innovation in the Local Area Network industry 1990–1999," Research Policy, Elsevier, vol. 45(8), pages 1604-1619.

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