Strategic decisions of a multi-product firm under Bertrand competition

IF 1.4 4区 经济学 Q3 BUSINESS, FINANCE
Hui-Ling Chung, Hung‐Yi Chen, Yan-Shu Lin
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引用次数: 0

Abstract

ABSTRACT This research examines three strategies that a multi-product firm can adopt when facing a single-product entrant under Bertrand competition: (i) staying in the duopoly market, (ii) abandoning the duopoly market, and (iii) bundling the two goods. When the competing good is homogenous, bundling is the most profitable strategy if the product differentiation of the two goods produced by the multi-product firm is not too high. When the competing good is heterogeneous, the preferred strategy of the multi-product firm and the welfare ranking depend on the substitutability of the competing good and the degree of product differentiation between the two goods.
伯特兰竞争下多产品企业的战略决策
摘要本研究考察了在Bertrand竞争下,多产品企业在面对单一产品进入者时可以采取的三种策略:(i)留在双寡头市场,(ii)放弃双寡头市场,以及(iii)将两种产品捆绑销售。当竞争商品是同质的,如果多产品企业生产的两种商品的产品差异不太高,捆绑销售是最有利可图的策略。当竞争商品是异质的时,多产品企业的选择策略和福利排名取决于竞争商品的可替代性和两种商品之间的产品差异化程度。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
2.40
自引率
9.10%
发文量
39
期刊介绍: The Asia-Pacific Journal of Accounting & Economics (APJAE) is an international forum intended for theoretical and empirical research in all areas of economics and accounting in general. In particular, the journal encourages submissions in the following areas: Auditing, financial reporting, earnings management, financial analysts, the role of accounting information, international trade and finance, industrial organization, strategic behavior, market structure, financial contracts, corporate governance, capital markets, and financial institutions. The journal welcomes contributions related to the Asia Pacific region, and targets top quality research from scholars with diverse regional interests. The editors encourage submission of high quality manuscripts with innovative ideas. The editorial team is committed to an expedient review process.
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