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Author:Kadiyali, V.
Title:Product line extensions and competitive market interactions: an empirical analysis
Journal:Journal of Econometrics
1999 : MAR/APR, VOL. 89:1-2, p. 339-364
Index terms:ECONOMETRICS
PRODUCTS
COMPETITION
Language:eng
Abstract:Line extensions are an important competitive instrument in consumer non-durable products. Using the "new empirical industrial organization" methodology, the authors examine the impact of a line extension on price competition between two national yogurt manufacturers. The authors find that the extending firm gains price-setting power. Additionally, the positioning of the line extension grows the combined sales, and raises the average weekly contributions for both firms.
SCIMA record nr: 189702
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