Vertical Differentiation and Entry DeterrenceA Reconsideration

  1. Beloki Mendizabal, Lander
  2. Usategui Díaz de Otalora, José María
Journal:
DFAE-II WP Series

ISSN: 1988-088X

Year of publication: 2005

Issue: 6

Type: Working paper

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Abstract

In this work we emphasize why market coverage should be considered endogenous for a correct analysis of entry deterrence in vertical differentiation models and discuss the implications of this endogeneity for that analysis. We consider contexts without quality costs and also contexts with convex fixed quality costs.

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