Are Manufacturers Competing through or with Supermarkets? A Theoretical Investigation

2006 ◽  
Vol 6 (1) ◽  
Author(s):  
Didier G Laussel
Keyword(s):  
Theoretical Investigation ◽  
Product Differentiation ◽  
Spatial Differentiation ◽  
Degree Of Differentiation ◽  
Fixed Fee ◽  
Spatially Differentiated

We study a model with product differentiation by manufacturers and spatial differentiation by supermarkets where the customers visit only one shop and the supermarkets carry both goods. Under fixed fee pricing by the manufacturers the intensity of interbrand competition increases with the degree of differentiation between the supermarkets. When the supermarkets are more and more spatially differentiated the struggle between manufacturers and supermarkets dominates the competition between the manufacturers and results in lower wholesale prices and manufacturers profits.

scholarly journals Technology Licensing Strategy for Network Product in a Service Industry

2015 ◽  
Vol 2015 ◽  
pp. 1-17 ◽  
Author(s):  
Xianpei Hong ◽  
Dan Zhao ◽  
Haiqing Hu ◽  
Shuang Song
Keyword(s):  
Product Differentiation ◽  
Service Provider ◽  
Optimal Strategy ◽  
Network Effects ◽  
Technology Innovation ◽  
Service Industry ◽  
Service Providers ◽  
Technology Licensing ◽  
Significant Attention ◽  
Fixed Fee

Technology licensing has gained significant attention in literature and practice as a rapid and effective way to improve firm’s capability of technology innovation. In this paper, we investigate a duopolistic service provider competition market, where service providers develop and sell a kind of network product. In this setting, we analyze the innovating service provider’s four licensing strategies: no licensing, fixed fee licensing, royalty licensing, and two-part tariff licensing. The literature suggests that when the network products can be completely substituted, two-part tariff licensing is the optimal strategy of the innovating service provider. We find that when the network products cannot be completely substituted, two-part tariff licensing is not always optimal. The degree of the product differentiation, the intensity of the network effects, and the R&D cost of the potential licensee play a key role in determining the innovating service provider’s optimal licensing strategies.

scholarly journals Significant factors impacting export decisions of small- and medium-sized softwood sawmill firms in North America

2016 ◽  
Vol 46 (1) ◽  
pp. 67-76 ◽  
Author(s):  
Daisuke Sasatani ◽  
Ivan L. Eastin
Keyword(s):  
Product Differentiation ◽  
Geographical Location ◽  
Production Capacity ◽  
The United States ◽  
International Markets ◽  
Differentiation Strategy ◽  
Export Orientation ◽  
Export Decisions ◽  
Leadership Strategy ◽  
Degree Of Differentiation

An augmented internationalization process (AIP) model is developed to explain important factors influencing decisions of small- and medium-sized softwood sawmill firms in the United States (US) and Canada. The decision to participate in exporting (i.e., export orientation) and the decision to intensify exporting activities (i.e., export involvement) are analyzed using ordinal probit hurdle regression model. Production capacity, geographical location, and the degree of differentiation strategies are factors playing important roles in determining the level of internationalization of the firm (i.e., export orientation + export involvement). Larger US firms are more likely to participate in exporting activities, whereas Canadian firms of all sizes are exporters. Also, firms in the US South are unlikely to participate in international business activities unless they adopt a product differentiation strategy, and even then they are more likely to use intermediary firms rather than undertake export activities directly. Firms adopting a differentiation strategy rather than a cost-leadership strategy are more likely to have a higher degree of internationalization. A major conclusion of the analysis is that developing a product differentiation strategy is a key to participation in international markets.

scholarly journals The Spatially Differentiated Trends Between Forest Pest Control Efficiency and Pest-induded Losses in China

2018 ◽  
Author(s):  
Qi Cai ◽  
Yushi Cai ◽  
Yali Wen
Keyword(s):  
Pest Control ◽  
Population Distribution ◽  
Spatial Differentiation ◽  
Control Measures ◽  
Chinese Government ◽  
Forest Pest ◽  
Prevention Measures ◽  
Pest Outbreaks ◽  
Control Work ◽  
Spatially Differentiated

China historically exhibits spatial differentiation from population distribution to ecological or economic development, and the forest pest control work is an epitome of this tendency. In recent times, global warming, man-made monoculture tree plantations, increasing human population density and intensified international trade aggravate forest pest outbreaks. Although Chinese government has complied with the internationally recommended practices, few stones remain unturned due to existing differential regional imbalance of forest pest distribution and control abilities. Evidence shows that the high-income provinces in the south have taken advantage of economic and technological superiority, resulting in the adoption of more efficient pest-control measures. To the contrary, in economically underdeveloped provinces of the northwest, a paucity of financial support has led to serious threats of pest damage that almost mirrored the demarcations of the Hu Huanyong Line. In this paper, we propose introducing public-private partnership (PPP) model into forest pest control and combining the national strategies to enact regional prevention measures in order to break the current spatially differentiated trends in China.

scholarly journals Spatial socio-economic heterogeneity of rural areas in the Russian Federation

2020 ◽  
Vol 222 ◽  
pp. 06022
Author(s):  
Irina Turgel ◽  
Alexander Pobedin ◽  
Larissa Bozhko
Keyword(s):  
Russian Federation ◽  
Rural Areas ◽  
Spatial Differentiation ◽  
State Regulation ◽  
Ministry Of Education ◽  
Territorial Development ◽  
The Russian Federation ◽  
Industrial Regions ◽  
The Republic ◽  
Degree Of Differentiation

Implementation of objectives set out in the Strategy for sustainable development of rural territories of the Russian Federation until 2030 requires solving the problems of spatial differentiation among rural territories in different regions of Russia. The article analyzes the level of differentiation using a set of socio-economic indicators of rural areas. The coefficient of variation was used as an indicator of the degree of spatial differentiation. In the course of analysis, the authors identified significant disparities in territorial development for most of the considered indicators, and particularly acute differences were found in economic parameters, including the volume of investment at the expense of the municipal budget. It is revealed that the degree of differentiation between rural territories is influenced not so much by economic development success as by the level of urbanization in the region. The empirical basis of the analysis is research results conducted within the framework of the research project “Improving the policy of state regulation of accelerated clustering of industrial regions” (AP05133531), carried out under grant funding from the Ministry of education and science of the Republic of Kazakhstan.

scholarly journals How Hercules cleans up the Augean stables: differentiated implementation of the EU Water Framework Directive

Water Policy ◽  
2021 ◽  
Author(s):  
Duncan Liefferink ◽  
Morten Graversgaard ◽  
Helle Ørsted Nielsen ◽  
Daan Boezeman ◽  
Ann Crabbé ◽  
...  
Keyword(s):  
Water Framework Directive ◽  
Ecological Status ◽  
Policy Instruments ◽  
Spatial Differentiation ◽  
Eu Water Framework Directive ◽  
The European Union ◽  
Local Conditions ◽  
Water Policies ◽  
Eu Member States ◽  
Spatially Differentiated

Abstract Realising the goals of the European Union (EU) Water Framework Directive is difficult. The differentiation of water policies according to local conditions enjoys increasing attention and may be necessary to achieve good ecological status in all European waters. This paper seeks to explore to what extent and how local water quality determines the degree of coercion, i.e. the extent to which differentiated policies are voluntary or rather imposed upon policy addressees, of spatially differentiated water policies. It does so on the basis of seven cases in five EU Member States. For highly polluted waters, spatially differentiated policies tend either to make the use of authoritative policy instruments, i.e. coercion by way of formal regulation, or to rely on the threat to introduce such regulation. For preventing the deterioration of relatively ‘clean’ waters, voluntary instruments based on information and persuasion dominate, often supported by subsidies and/or the direct input of public resources. In relation to the spatial differentiation of water policies, issues of data demand, equality and legitimacy have to be taken into account.

scholarly journals Spatially Differentiated Trends between Forest Pest-Induced Losses and Measures for Their Control in China

2018 ◽  
Vol 11 (1) ◽  
pp. 73 ◽  
Author(s):  
Qi Cai ◽  
Yushi Cai ◽  
Yali Wen
Keyword(s):  
Pest Control ◽  
Population Distribution ◽  
Spatial Differentiation ◽  
Control Measures ◽  
Chinese Government ◽  
Forest Pest ◽  
Prevention Measures ◽  
Pest Outbreaks ◽  
Control Work ◽  
Spatially Differentiated

Historically, China has exhibited spatial differentiation in issues ranging from population distribution to ecological or economic development; forest pest-control work exemplifies this tendency. In recent times, global warming, man-made monoculture tree-plantations, increasing human population density, and intensified international trade aggravate forest pest outbreaks. Although the Chinese government has complied with internationally recommended practices, some aspects of pest management remain unaddressed due to existing differential regional imbalance in forest pest distribution and control capacities. Evidence shows that the high-income provinces in the south have taken advantage of economic and technological superiority, resulting in the adoption of more efficient pest-control measures. In contrast, the economically underdeveloped provinces of the northwest continue to experience a paucity of financial support that has led to serious threats of pest damage that almost mirror the demarcations of the Hu Huanyong Line. In this paper, we propose the introduction of a Public–Private–Partnership (PPP) model into forest pest control and the combination of the national strategies to enact regional prevention measures to break away from current spatially differentiated trends in China.

scholarly journals Optimal Licensing Contract: The Implications of Preference Function

2019 ◽  
Vol 19 (1) ◽  
pp. 61-67
Author(s):  
Arijit Mukherjee
Keyword(s):  
Product Differentiation ◽  
Returns To Scale ◽  
Preference Function ◽  
Market Expansion ◽  
Preference Functions ◽  
Expansion Effect ◽  
Number Of Firms ◽  
Fixed Fee

Our analysis provides a rationale for the existence of a positive fixed-fee and output royalty in the licensing contracts. In this article, we show that the preference functions play an important role in this respect. As the market expansion effect gets weaker, it reduces the possibility of a royalty-only contract, thus increasing the possibility of the co-existence of a positive fixed-fee and output royalty in the licensing contract. Our argument is different from the existing reasons based on imitation, number of firms, product differentiation and decreasing returns to scale. JEL: D21, D43, L13

scholarly journals Trade and Variety in a Model of Endogenous Product Differentiation

2009 ◽  
Vol 9 (1) ◽  
Author(s):  
Oliver Lorz ◽  
Matthias Wrede
Keyword(s):  
International Trade ◽  
Product Differentiation ◽  
Market Size ◽  
Fixed Costs ◽  
Trade Integration ◽  
Horizontal Differentiation ◽  
Degree Of Differentiation ◽  
Number Of Firms

Abstract This paper sets up a model of endogenous product differentiation to analyze the variety effects of international trade. In our model multi-product firms decide not only about the number of varieties they will supply but also about the degree of horizontal differentiation between these varieties. Firms can raise the degree of differentiation by investing variety-specific fixed costs. In this setting, we analyze how trade integration, i.e. an increase in market size, influences the number of firms in the market, the number of product varieties supplied by each firm, and the degree of differentiation between these varieties.

Sign in / Sign up

Export Citation Format

Share Document