Quality Improvement to Meet Competitive Fringe

Matsushima, Noriaki; Liu, Ren-Jye

Institute of Social and Economic Research Discussion Papers, 2012, 854

アクセス数:393件（2025-07-02 22:55 集計）

固定URL: https://hdl.handle.net/11094/23403

論文情報

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タイトル
Quality Improvement to Meet Competitive Fringe
著者
NRID
1000080334879 1000080334879
ORCID
0000-0002-7865-3875 0000-0002-7865-3875
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Scopus Author ID
7005645778 7005645778
著者名
Matsushima, Noriaki
著者名
Liu, Ren-Jye
キーワード等
fringe firms
competitive pressure
investments
vertical differentiation
抄録
We investigate what kind of competitive pressure induces existing firms to engage in more intensive innovation activities. We examine two types of competitive pressure: a price decrease in competitive fringe firms and a quality improvement therein. We use an oligopoly model with vertical differentiation to investigate this question. We show that a decrease in the exogenous price of competitive firms induces the two existent leading firms (one high-quality firm and one mid-quality firm) to engage in quality investments more if the ex ante quality level of the high quality product is large enough; otherwise, only the mid-quality firm engages more in quality investment. We also show that an increase in the exogenous quality level of competitive firms diminishes the incentive of the mid-quality firm to engage in quality investments.
出版者
The Institute of Social and Economic Research, Osaka University
収録物名
Institute of Social and Economic Research Discussion Papers
巻(号)
854
刊行年月
2012-08
言語
英語
ハンドルURL
https://hdl.handle.net/11094/23403
関連情報 (references)
URI
https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2012/DP0854.pdf
アクセス権
metadata only access
カテゴリ
ディスカッション／ワーキング・ペーパー DP/WP
Institute of Social and Economic Research Discussion Papers