Product Line Rivalry

James A. Brander · Jonathan Eaton

231 citations0/0 files storedAmerican Economic Review

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Abstract

This paper examines product selection by multi-product firms, taking explicit account of the sequential nature of real decisions: firms choose product lines before the quantity or price rivalry with other firms is resolved. Unlike most previous work, we focus on demand side strategic considerations rather than cost side. We find close substitutes produced by the same firm is a natural outcome, in contrast to conventional wisdom.(This abstract was borrowed from another version of this item.)

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