Stackelberg leadership with product differentiation and endogenous entry: some comparative static and limiting results

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11640%2F12%3A00389200" target="_blank" >RIV/00216208:11640/12:00389200 - isvavai.cz</a>

Alternative codes found

RIV/67985998:_____/12:00379839

Result on the web

<a href="http://dx.doi.org/10.1007/s00712-011-0246-4" target="_blank" >http://dx.doi.org/10.1007/s00712-011-0246-4</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1007/s00712-011-0246-4" target="_blank" >10.1007/s00712-011-0246-4</a>

Result language

angličtina

Original language name

Stackelberg leadership with product differentiation and endogenous entry: some comparative static and limiting results

Original language description

Allowing for endogenous entry in the traditional Stackelberg setup with product differentiation, leads to reverting of the standard comparative static and limiting results. Unlike in the standard Stackelberg setup with barriers to entry, the leader?s profit increases when the differentiation becomes lower. The reason is that competition becomes tougher when products become more alike, and consequently, fewer firms enter in equilibrium. On the other hand, increasing product differentiation towards its limit results in number of entrants tending to infinity and for very large market, the profit of the leader approaches zero. Thus market structure approaches monopolistic competition, rather than the standard monopoly outcome that occurs with exogenous number of followers.

Czech name

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Czech description

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Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

AH - Economics

OECD FORD branch

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Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2012

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Journal of Economics

ISSN

0931-8658

e-ISSN

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Volume of the periodical

106

Issue of the periodical within the volume

3

Country of publishing house

AT - AUSTRIA

Number of pages

12

Pages from-to

221-232

UT code for WoS article

000305696800002

EID of the result in the Scopus database

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