DISTINCTIVE STRATEGIES: VERTICAL HIERARCHIES' IMPACT ON PRODUCT DIFFERENTIATION IN COMPETITIVE MARKETS
Abstract
This study examines the dynamics of product differentiation within competitive markets, focusing on the influence of vertical hierarchies on strategic positioning. By analyzing the strategies employed by firms operating within vertically integrated supply chains, the research investigates how different levels of the production process impact product distinctiveness. Through empirical research and theoretical analysis, this study reveals the varying effects of vertical hierarchies on product differentiation, shedding light on the intricate interplay between strategic choices, market competition, and consumer preferences. The findings contribute to a deeper understanding of the role vertical integration plays in shaping product offerings and market dynamics.
Downloads
Keywords:
Abstract
This study examines the dynamics of product differentiation within competitive markets, focusing on the influence of vertical hierarchies on strategic positioning. By analyzing the strategies employed by firms operating within vertically integrated supply chains, the research investigates how different levels of the production process impact product distinctiveness. Through empirical research and theoretical analysis, this study reveals the varying effects of vertical hierarchies on product differentiation, shedding light on the intricate interplay between strategic choices, market competition, and consumer preferences. The findings contribute to a deeper understanding of the role vertical integration plays in shaping product offerings and market dynamics.
References
Asker, J., 2005, “Diagnosing Foreclosure Due to Exclusive Dealing,” Mimeo, New York University.
Blair, F. and T. Lewis, 1994, “Optimal Retail Contracts with Asymmetric Information and Moral Hazard,” RAND Journal of Economics, 25, 284–296.
Bester, H., 1998, “Quality Uncertainty Mitigates Product Differentiation,” RAND Journal of Economics, 29, 828–844.
Bonanno, G. and J. Vickers, 1988, “Vertical Separation,” Journal of Industrial Economics, 36, 257–265.
Böckem, S., 1994, “A Generalized Model of Horizontal Product Differentiation,” Journal of Industrial Economics, 42, 287–298.
Brekke, K. R. and O. R. Straume, 2004, “Bilateral Monopolies and Location Choice,” Regional Science and Urban Economics, 34, 275–288.
Caillaud, B., B. Jullien, and P. Picard, 1995, “Competing Vertical Structures: Precommitment and Renegotiation,” Econometrica, 63, 621–646.
Christou, C. and N. Vettas, 2005, “Location Choices Under Quality Uncertainty,” Mathematical Social Sciences, 50, 268–278.
Colombo, S., 2012, “Product Differentiation and Collusion Sustainability When Collusion is Costly,” Marketing Science, 32, 669–674.
D'Aspremont, C., J. Gabszewicz, and J.-F. Thisse, 1979, “On Hotelling's Stability in Competition,” Econometrica, 17, 1145–1151.
Diamond, D. and R. Verrecchia, 1991, “Disclosure, Liquidity, and the Cost of Capital,” Journal of Finance, 66, 1325–1355.
De Palma, A., V. Ginsburgh, Y. Papageorgiou, and J.-F. Thisse, 1985, “The Principle of Minimum Differentiation Holds Under Sufficient Heterogeneity,” Econometrica, 53, 767–782.
Economides, N., 1986, “Minimal and Maximal Product Differentiation in Hotelling's Duopoly,” Economic Letters, 21, 67–71.
Ellul, A., T. Jappelli, M. Pagano, and F. Panunzi, 2011, “Transparency, Tax Pressure and Access to Finance,” Mimeo, Università di Napoli Federico II.
