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| Rajeev Tyagi |
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| ''On Firms' Preferences for Product Differentiation'' |
| ( 2005, Vol. 12 No.17 ) |
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| We examine firms' preferences for product differentiation when a firm has a demand-side and/or a cost-side advantage over its competitor. We show that if the magnitude of these advantages is small, then both firms prefer more differentiated products. However, if the magnitude of demand-side (cost-side) advantage is larger, then only the advantaged (disadvantaged) firm prefers more differentiated products. |
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| Keywords: Competition |
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
D4 - Market Structure and Pricing: General |
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| Manuscript Received : Sep 19 2005 | | Manuscript Accepted : Oct 06 2005 |
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