Department   Undergraduate School  , School of Commerce
   Position   Professor
Language English
Publication Date 2023
Type Academic Journal
Peer Review Peer reviewed
Title "Sequential Product Positioning and Entry Timing under Differential Costs in a Continuous-Time Model", Annals of Operations Research
Contribution Type Co-authored (first author)
Journal Annals of Operations Research
Journal TypeAnother Country
Publisher Springer
Volume, Issue, Page forthcoming
Authorship Lead author,Corresponding author
Author and coauthor Takeshi Ebina and Katsumasa Nishide
Details We investigate the product positioning decisions of two firms that enter a market sequentially under a duopoly competition. Two important assumptions are made: differential marginal production costs between the two firms, and endogenous entry timing of a follower in a continuous-time setting. We analyze a standard location-pricing Hotelling game with quadratic transportation costs with the points of departure being that the two firms (i) are allowed to have different (constant) marginal costs; (ii) enter sequentially in a pre-determined order in a market in which the consumers are growing over time; and (iii) are not restricted to choosing positions inside the interval in which consumer preferences are located. For the first mover, the dynamic market growth can give rise to a trade-off between exploiting short-run monopoly and long-run duopoly profits.
URL for researchmap https://researchmap.jp/ebinatakeshi2010