Vertical differentiation: entry and market coverage with multiproduct firms

Article Abstract:

The introduction of multiple qualities may aid an incumbent company in preventing entry of other companies to the market. It was established that there are cases wherein a multiproduct incumbent may elect not to serve some consumers inspite of entry threats, though the entire market would have been covered by single product companies. Also, entry threats may lead to a decreased market coverage if the incumbent finds relocation to be the least costly entry deterring tactic.

Planning, Competition (Economics), Business planning, Market share

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Strategic investments with spillovers, vertical integration and foreclosure in the broadband access market

Article Abstract:

Discussion between two retailers of broadband access when they differ in their ability to offer value-added services is analyzed. The firm invests to increase the input quality before an access price regulation is set, and the integrated firm uses over investment as an alternative foreclosure tool.

Methods, Analysis, Strategic planning (Business), Broadband transmission, Broadband, Vertical integration, Broadband Internet

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