期刊名称：CORE Discussion Papers / Center for Operations Research and Econometrics (UCL), Louvain
出版年度：2009
卷号：1
出版社：Center for Operations Research and Econometrics (UCL), Louvain
摘要：We consider a stage-game where the entrant may simultaneously commit to its product’s quality
and the level of its production capacity before price competition takes place. We show that
capacity limitation is more effective than quality reduction as a way to induce entry
accomodation: the entrant tends to rely exclusively on capacity limitation in a subgame perfect
equilibrium. This is so because capacity limitation drastically changes the nature of price
competition by introducing local strategic substitutability whereas quality differentiation only
alters the intensity of price competition.
