|
OTA RUI
Department Undergraduate School , School of Commerce Position Professor |
|
| Language | English |
| Publication Date | 2021/02 |
| Type | Academic Journal |
| Peer Review | Peer reviewed |
| Title | Price Competition and Setup Cost |
| Contribution Type | Co-authored (first author) |
| Journal | Mathematics |
| Journal Type | Another Country |
| Publisher | {MDPI} {AG} |
| Volume, Issue, Page | 9(3),pp.289-289 |
| Authorship | Lead author,Corresponding author |
| Author and coauthor | Rui Ota,Hiroshi Fujiu |
| Details | Few studies analyze the endogenous emergence of price competition in a new product market. This paper analyzes two differentiated products, an existing product and a newly introduced substitutable product, and investigates conditions under which a price competition endogenously emerges in a new product market in the context of a choice between engaging in price competition and holding price leadership. We demonstrate that Bertrand price competition emerges when the setup cost for the new product is high enough. This result implies that government policies reducing setup costs such as subsidies could change the type of competition to price leadership in a new product market. |
| PermalinkURL | https://www.mdpi.com/2227-7390/9/3/289/pdf |