search query: @author Bonanno, G. / total: 4
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| Author: | Bonanno, G. |
| Title: | Location choice, product proliferation and entry deterrence. (!Hotelling's model) |
| Journal: | Review of Economic Studies
1987 : JAN, VOL. 54:177, p. 37-45 |
| Index terms: | PRODUCTION PRODUCTS STRATEGY |
| Language: | eng |
| Abstract: | Within a slightly modified version of Hotelling's model the claim that the threat of entry induces existing firms to produce a larger number of products than they would otherwise is considered. It is shown that entry deterrence, although optimal,need not be achieved through product proliferation. In some cases the incumbent monopolist resorts to an entry-deterring strategy based on location choice rather than product proliferation. It is also shown that in some cases the number of products chosen by the incumbent facing the threat of entry is strictly greater than the minimum number required to deter entry. |
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