caa a22 4500 467930201 CHVBK 20180406152941.0 cr unu---uuuuu 170328e20061101xx s 000 0 eng 10.1007/s11151-006-9115-7 doi (NATIONALLICENCE)springer-10.1007/s11151-006-9115-7 Vertical Product Differentiation, Entry-Deterrence Strategies, and Entry Qualities [Elektronische Daten] [Yong-Hwan Noh, Giancarlo Moschini] We analyze the potential entry of a new product into a vertically differentiated market. Here the entry-deterrence strategies of the incumbent firm rely on "limit qualities.” The model assumes quality-dependent marginal production costs and considers sequential quality choices by an incumbent and an entrant. Entry-quality decisions and the entry-deterrence strategies are related to the fixed cost necessary for entry and to the degree of consumers' taste for quality. We detail the conditions under which the incumbent increases its quality level to deter entry. Quality-dependent marginal production costs in the model entail the possibility of inferior-quality entry as well. Welfare is not necessarily improved when entry is encouraged rather than deterred. Springer Science+Business Media, LLC, 2006 Entry deterrence nationallicence Quality choice nationallicence Stackelberg duopoly nationallicence Vertical product differentiation nationallicence Noh Yong-Hwan Economist, Institute for Monetary and Economic Research, Bank of Korea, 110, 3-Ga, Namdaemun-Ro, Jung-Gu, 100-794, Seoul, Republic of Korea aut Moschini Giancarlo Department of Economics, Iowa State University, 50011-1070, Ames, IA, USA aut Review of Industrial Organization Kluwer Academic Publishers-Plenum Publishers; http://www.springer-ny.com 29/3(2006-11-01), 227-252 0889-938X 29:3<227 2006 29 11151 https://doi.org/10.1007/s11151-006-9115-7 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s11151-006-9115-7 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Noh Yong-Hwan Economist, Institute for Monetary and Economic Research, Bank of Korea, 110, 3-Ga, Namdaemun-Ro, Jung-Gu, 100-794, Seoul, Republic of Korea aut NATIONALLICENCE 700 1- Moschini Giancarlo Department of Economics, Iowa State University, 50011-1070, Ames, IA, USA aut NATIONALLICENCE 773 0- Review of Industrial Organization Kluwer Academic Publishers-Plenum Publishers; http://www.springer-ny.com 29/3(2006-11-01), 227-252 0889-938X 29:3<227 2006 29 11151 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer