Price and Nonprice Rivalry in Oligopoly: The Integrated Battleground

Cover......Page 1
Contents......Page 8
List of Figures......Page 12
List of Tables......Page 14
Preface......Page 20
PART I SOME NECESSARY PRELIMINARIES......Page 22
1 A manifesto......Page 24
2 Some conceptual challenges......Page 29
3 Treating the product......Page 30
4 The measurement and scaling problem......Page 31
5 The case for quasi-measurement or scaling......Page 38
6 Summary and conclusions......Page 40
2 Core Characteristics Analysis......Page 42
1 Core characteristics analysis......Page 43
2 Methodologies for quasi-measurement of characteristics: preferences excluded......Page 45
3 Methodologies for quasi-measurement of characteristics: preferences included......Page 51
4 The computation of distances in characteristics dimensions and spaces......Page 54
5 An experiment in characteristics scaling and product distance determination......Page 61
6 Summary and conclusions......Page 68
3 Rivalrous Consonance: An Approach to Mature Oligopolistic Competition......Page 71
1 Mature oligopoly......Page 73
2 A simple duopoly model......Page 79
3 Social welfare considerations......Page 83
4 Summary and conclusions......Page 99
PART II DECISION MAKING IN OLIGOPOLY: APPROACHES IN THE LITERATURE......Page 102
1 Spatial analogs......Page 104
2 Hotelling models in a linear product space......Page 105
3 Salop\'s model with prices variable, locations fixed......Page 109
4 Models with F.O.B. prices fixed, product locations variable: Eaton and Lipsey\'s model......Page 115
6 Lessons, conjectures, and potential......Page 124
1 The consumption technology......Page 126
2 A critique of the characteristics approach......Page 137
3 Conclusions......Page 146
1 Introduction......Page 148
2 Game-theoretic methodology......Page 149
3 Monopolistic competition methodology......Page 159
1 Separable pricing of characteristics......Page 174
2 Nonseparable pricing of characteristics......Page 186
3 The welfare implications of simple oligopoly under rivalrous consonance: a comparison......Page 190
4 A summary......Page 193
PART III THEORETICAL GUIDANCE TO AND USAGE OF MODELING METHODOLOGIES......Page 196
8 The Isolated Firm and Consumer Benchmarking of Measurable Characteristics......Page 198
1 Unwarrantied products with nonaging characteristics......Page 200
2 Warrantied products with nonaging characteristics......Page 210
3 Unwarrantied products with aging characteristics......Page 217
4 Warrantied products with aging characteristics......Page 229
5 Some conclusions and conjectures......Page 239
1 Purpose and structure of the model......Page 241
2 The model......Page 242
3 First-order conditions......Page 244
4 Algorithm to solve the model......Page 248
5 Generalization to n firms......Page 281
6 Conclusions......Page 282
1 Scaling by quality indifference premia......Page 287
2 Model 1: Spatial distances as metric with no tacit collusion......Page 290
3 Model 2: Spatial distances as metric with the rivalrous consonance mode of tacit collusion......Page 308
4 A summary and conclusions......Page 316
11 Nodal Changes in Brand Locations in Product Space......Page 319
1 Nodal relocation on a product space without tacit collusion......Page 320
2 Nodal relocation on a product space with tacit collusion......Page 336
3 Nodal relocation with cost structure equalization......Page 341
4 Tacit collusion and entry of new firms......Page 344
5 Summary and conclusions......Page 347
12 Selling Costs and Cognitive Distancing......Page 349
1 Model 1 – Informational advertising with no tacit collusion, revenue-determined advertising......Page 350
2 Model 2 – Informational advertising with no tacit collusion, profit-optimal advertising......Page 364
3 Model 3 – Informational and cognitive positioning advertising with no tacit collusion......Page 380
4 Model 4 – Informational and cognitive positioning advertising under rivalrous consonance......Page 387
5 Summary and conclusions......Page 399
PART IV EPILOG AND PROSPECTUS......Page 410
1 In the way of a recapitulation......Page 412
2 Results and conjectures......Page 416
3 Deficiencies in models and modeling methodology......Page 419
Notes......Page 422
Bibliography......Page 440
C......Page 444
H......Page 445
M......Page 446
P......Page 447
R......Page 448
S......Page 449
W......Page 450