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Vertical Differentiation and Entry Deterrence: A Reconsideration

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  • Beloki, Lander
  • Usategui Díaz de Otalora, José María

Abstract

In this work we emphasize why market coverage should be considered endogenous for a correct analysis of entry deterrence in vertical differentiation models and discuss the implications of this endogeneity for that analysis. We consider contexts without quality costs and also contexts with convex fixed quality costs.

Suggested Citation

  • Beloki, Lander & Usategui Díaz de Otalora, José María, 2005. "Vertical Differentiation and Entry Deterrence: A Reconsideration," DFAEII Working Papers 1988-088X, University of the Basque Country - Department of Foundations of Economic Analysis II.
    • Handle: RePEc:ehu:dfaeii:6744
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    File URL: https://addi.ehu.es/handle/10810/6744
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    References listed on IDEAS

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    1. Scarpa, Carlo, 1998. "Minimum quality standards with more than two firms1," International Journal of Industrial Organization, Elsevier, vol. 16(5), pages 665-676, September.
    2. Constantatos, Christos & Perrakis, Stylianos, 1997. "Vertical differentiation: Entry and market coverage with multiproduct firms," International Journal of Industrial Organization, Elsevier, vol. 16(1), pages 81-103, November.
    3. Constantatos, Christos & Perrakis, Stylianos, 1999. "Free entry may reduce total willingness-to-pay1," Economics Letters, Elsevier, vol. 62(1), pages 105-112, January.
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    Cited by:

    1. Le Duc Niem & Taegi Kim, 2009. "Economic Development and Trade of Quality Differentiated Goods," Korean Economic Review, Korean Economic Association, vol. 25, pages 367-385.

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