{"title":"Specialization, Generic Firms and Market Competition","authors":"M. Lijesen, Carlo Reggiani","doi":"10.2139/ssrn.3246996","DOIUrl":null,"url":null,"abstract":"The choice of specialization affects firms' brand perception by consumers and it is of crucial importance for their profitability in competitive markets. We model how firms choose specialization through a spatial non-localized competition framework that naturally allows for markets where not all brands are available. The model predicts the co-existence of generic and specialized firms, a feature common to many markets but very rare in modeling endogenous product differentiation. Our analysis also provides general results on firms' pricing and evaluates the sensitivity of the co-existence of generic and specialized firms to a number of assumptions.","PeriodicalId":269853,"journal":{"name":"MKTG: Branding & Brand Management (Topic)","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"MKTG: Branding & Brand Management (Topic)","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.3246996","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 2
Abstract
The choice of specialization affects firms' brand perception by consumers and it is of crucial importance for their profitability in competitive markets. We model how firms choose specialization through a spatial non-localized competition framework that naturally allows for markets where not all brands are available. The model predicts the co-existence of generic and specialized firms, a feature common to many markets but very rare in modeling endogenous product differentiation. Our analysis also provides general results on firms' pricing and evaluates the sensitivity of the co-existence of generic and specialized firms to a number of assumptions.