Credible spatial preemption through reputable extension

Article Abstract:

An incumbent firm may preempt potential market entrants by launching new products to decrease the entrants' potential profits. If unsuccessful however, the incumbent may choose to withdraw such products to avoid post-entry competition. Such a withdrawal may be damaging to the incumbent's reputation due to perceived low quality. Reputational links between the incumbent's products exist when they share the firm's or brand name. Thus, the use of product extensions for spatial preemption can have negative reputational effects on existing products.

Product management, Brand choice

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Diversification and concentration changes in a liberalised environment: the case of New Zealand manufacturing industries

Article Abstract:

New Zealand has undergone widespread liberalization since 1984. Because of this, manufacturing firms have either diversified inbound to or outbound from an industry or further restricted market activity. New firms which entered the market decreased concentration while limiting this effect to well concentrated industries. Companies which have secured market positions and diversified were highly effective in decreasing industry concentration.

New Zealand

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Endogenous mergers in endogenous sunk cost industries

Article Abstract:

A study examines the relationship between size of markets and industrial concentration.

Italy, Analysis, Market segmentation

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