scholarly journals On Price Competition with Market Share Delegation Contracts

2012 ◽  
Vol 34 (1) ◽  
pp. 40-43 ◽  
Author(s):  
Michael Kopel ◽  
Luca Lambertini
Keyword(s):  
Market Share ◽  
Price Competition ◽  
Market Share Delegation

scholarly journals Market Share Delegation in a Bertrand Duopoly: Synchronisation and Multistability

2015 ◽  
Vol 2015 ◽  
pp. 1-13 ◽  
Author(s):  
Luciano Fanti ◽  
Luca Gori ◽  
Cristiana Mammana ◽  
Elisabetta Michetti
Keyword(s):  
Market Share ◽  
Discrete Time ◽  
Price Competition ◽  
Initial Conditions ◽  
Two Dimensional ◽  
Discrete Time System ◽  
Multiple Attractors ◽  
Time System ◽  
Market Share Delegation

This paper tackles the issue of local and global analyses of a duopoly game with price competition and market share delegation. The dynamics of the economy is characterised by a differentiable two-dimensional discrete time system. The paper stresses the importance of complementarity between products as a source of synchronisation in the long term, in contrast to the case of their substitutability. This means that when products are complements, players may coordinate their behaviour even if initial conditions are different. In addition, there exist multiple attractors so that even starting with similar conditions may end up generating very different dynamic patterns.

Local and global dynamics in a duopoly with price competition and market share delegation

2014 ◽  
Vol 69 ◽  
pp. 253-270 ◽  
Author(s):  
Luciano Fanti ◽  
Luca Gori ◽  
Cristiana Mammana ◽  
Elisabetta Michetti
Keyword(s):  
Market Share ◽  
Price Competition ◽  
Global Dynamics ◽  
Local And Global Dynamics ◽  
Market Share Delegation

scholarly journals Dominance and Competitive Bundling

2019 ◽  
Vol 11 (3) ◽  
pp. 1-33 ◽  
Author(s):  
Sjaak Hurkens ◽  
Doh-Shin Jeon ◽  
Domenico Menicucci
Keyword(s):  
Market Share ◽  
Price Competition ◽  
The Other

We study how bundling affects competition between two asymmetric multi-product firms. One firm dominates the other in that it produces better products more efficiently. For low (high) levels of dominance, bundling intensifies (relaxes) price competition and lowers (raises) both firms’ profits. For intermediate dominance levels, bundling increases the dominant firm’s market share substantially, thereby raising its profit while reducing its rival’s profit. Hence, the threat to bundle is then a credible foreclosure strategy. We also identify circumstances in which a firm that dominates only in some markets can profitably leverage its dominance to other markets by tying all its products. (JEL D43, K21, L13, L41)

Benefits of Customer Loyalty in Markets with Endogenous Search Costs

2020 ◽  
Author(s):  
Dmitri Kuksov ◽  
Mohammad Zia
Keyword(s):  
Market Share ◽  
Customer Loyalty ◽  
Price Competition ◽  
Academic Research ◽  
Search Costs ◽  
The Other ◽  
Search Cost ◽  
Negative Effect ◽  
Small Advantage ◽  
Loyal Customers

Managers have long appreciated having loyal customers, and academic research has explored the benefits of loyal consumers as coming from reduced price competition. This paper extends this research by considering how loyalty affects firms’ decisions to facilitate search for nonloyal consumers. We show that in equilibrium, the store with more loyal customers ends up having lower search costs even if facilitating search is costless. The intuition for this result is that nonloyal consumers expect higher prices at a store with a larger loyal segment, and therefore, this store has to set a lower search cost to counteract the negative effect of this expectation. Given this, it is optimal for the other store to set a higher search cost to avoid intensifying price competition. As a consequence, a larger loyal segment may lead to both higher prices and a higher market share among nonloyal customers. In other words, an advantage in customer loyalty leads to the store becoming the search hub of the nonloyal customers. This, in turn, implies that even a small advantage in customer loyalty may lead to a large increase in profits and may help explain why some managers place such a high value on earning customer loyalty. This paper was accepted by David Simchi-Levi, marketing.

Differentiation and Positioning Strategy: A Toss of the Same Coin

2012 ◽  
Vol 1 (2) ◽  
pp. 53-65
Author(s):  
Oghojafor Ben Akpoyomare ◽  
Ladipo Patrick Kunle Adeosun ◽  
Rahim Ajao Ganiyu
Keyword(s):  
Competitive Advantage ◽  
Market Share ◽  
Price Competition ◽  
Developing Economies ◽  
Service Differentiation ◽  
Competition Strategy ◽  
Business Organizations ◽  
Marketing Literature ◽  
Positioning Strategy ◽  
Product Service

The increasing rate of the incidence of globalization of market, and the attendant intense competition amongst local business organizations in rapidly developing economies has taken a shift from price competition strategy (to avoid price war) to non-price competition strategy in terms of product/service differentiation and positioning to achieve the same objectives of preventing declining sales-turnover, profitability, and market-share and by extension secure market/competitive advantage over competitors. Differentiation and positioning have each been separately discussed in marketing literature; however, this paper represents an attempt to view same as a toss of the same coin.

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