Title: Informational Product Differentiation as a Barrier to Entry
Abstract:Abstract In a market for experience goods, the products of an incumbent firm and a new entrant are informationally differentiated. A signalling model is analyzed, and it is shown that informational pr...Abstract In a market for experience goods, the products of an incumbent firm and a new entrant are informationally differentiated. A signalling model is analyzed, and it is shown that informational product differentiation can be a barrier to entry (even under ‘pro-entry’ assumptions). Furthermore, when products are informationally differentiated, cost-based notions of predation are argued inappropriate.Read More
Publication Year: 1986
Publication Date: 1986-11-01
Language: en
Type: preprint
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Cited By Count: 2
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