search query: @author Linnemer, L. / total: 4
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| Author: | Linnemer, L. |
| Title: | Entry deterrence, product quality: price and advertising as signals |
| Journal: | Journal of Economics and Management Strategy
1998 : WINTER, VOL. 7:4, p. 615-646 |
| Index terms: | ECONOMICS PRODUCT QUALITY PRICES |
| Language: | eng |
| Abstract: | The authors analyzes the marketing strategy of an incumbent monopolist facing a threat of entry. Product quality is unknown to consumers, and the monopolist's cost is unknown to the potential entrant. The incumbent uses both price and advertising to signal cost and quality. The monopolist faces a dilemma because signaling a high quality attracts customers but requires a high price, whereas signaling low cost prevents entry but requires a low price. |
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