Retour aux activités
Séminaire Fondation HEC Montréal

Delaying product introduction in a duopoly: A strategic dynamic analysis

iCalendar

11 sept. 2017   14h30 — 15h30

Serhat Gezer Bielefeld University, Allemagne

We consider an economy where initially two firms are active on a homogeneous product market. One of the firms has an option to introduce a substitute product in addition to the existing product by incurring adoption costs. We numerically derive the optimal introduction time and the associated Markov-perfect equilibria for investment in capacities and find that depending on the initial capacities on the established market and the value of adoption costs, three scenarios are possible for the innovator, namely introducing immediately, delaying introduction and abstaining from product introduction. In case of delay, the innovator strategically reduces investment in capacities on the established market prior to product introduction in order to increase the marginal value of the new product when switching.


Entrée gratuite.
Bienvenue à tous!

Georges Zaccour responsable

Lieu

Salle 4488
Pavillon André-Aisenstadt
Campus de l'Université de Montréal
2920, chemin de la Tour Montréal QC H3T 1J4 Canada

Organismes associés

Axe de recherche

Application de recherche