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Type | Journal Article |
Scope | Discipline-based scholarship |
Title | Challenging the incumbent: entry in markets with captive consumers and taste heterogeneity |
Organization Unit | |
Authors |
|
Item Subtype | Original Work |
Refereed | Yes |
Status | Published in final form |
Language |
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Journal Title | Journal of Economics and Management Strategy |
Publisher | Wiley-Blackwell Publishing, Inc. |
Geographical Reach | international |
ISSN | 1058-6407 |
Volume | 31 |
Number | 4 |
Page Range | 961 - 979 |
Date | 2022 |
Abstract Text | We analyze entry of a firm with a new and differentiated product into a market with two properties: An existing incumbent has a captive consumer base, and all consumers have heterogeneous tastes. The interaction between the share of captive consumers and the degree of taste heterogeneity leads to nonmonotone effects of both parameters on entry: The captive share can have an inverse-U relation with entry profits, and higher taste heterogeneity (i.e., less product substitutability) can impede entry in the presence of captive consumers. |
Digital Object Identifier | 10.1111/jems.12490 |
Other Identification Number | merlin-id:22504 |
PDF File | Download from ZORA |
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Keywords | Management of technology and innovation, strategy and management, economics and econometrics, general business, management and accounting, materials chemistry, economics and econometrics, media technology, forestry |
Additional Information | Earlier published as ECON Working Paper No. 386: https://www.zora.uzh.ch/id/eprint/203279/ |