Low Quality Leadership in Vertically Differentiated Duopoly

Topics:
Innovation
Tags:
Duopoly,
Leadership,
Management,
University Of York
Source:
University of York

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Overview: According to the business literature a firm's competitive position is determined by the nature of the market. In a 'premium' market, profit leadership falls to firms offering high quality, whereas in a 'value' market, it falls to low quality providers, which on grounds of a cost advantage capture a major market share. This paper incorporates this idea into a model of a vertically differentiated duopoly. The notion of high quality leadership has been applied to innovation races and trade theory.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 370KB | Date: Aug 2001 | Pages: 30

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