Corvinus
Corvinus

Competitors are welcome: why incumbents might embrace entrants?

Bakó, Barna (2013) Competitors are welcome: why incumbents might embrace entrants? Working Paper. Corvinus University of Budapest Department of Microeconomics. (Unpublished)

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Abstract

In this article we show that the price and the profit of an incumbent firm may increase after a new firm enters its market. Our analysis suggests that a well-established firm after competition emerges on its market might benefit from excluding some consumers from the low-end segment and concentrate only on its loyal consumers.

Item Type:Monograph (Working Paper)
Uncontrolled Keywords:product differentiation, consumer segmentation, marketing strategy
Subjects:Economics
Funders:Lendület Fiatal Kutatói Program / Momentum Program of the Hungarian Academy of Sciences
Projects:'Lendület' Strategic Interactions Group
ID Code:1274
Deposited By: Barna Bakó
Deposited On:01 Jul 2013 13:06
Last Modified:03 Nov 2014 08:06

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