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• W2062540153 abstract "In vertical product differentiation with a stochastic research technology, firms should target their research at different quality levels for efficiency. In a natural monopoly where the top firm finds it most profitable to sell to the whole market, the incentives for risk-taking and for firms to differentiate their targeted qualities are optimal. In a natural oligopoly (which results when there is sufficient dispersion of tastes), the relationship between a firm’s payoff and its quality improvement over other firms is weakened. This diminishes the firms’ incentives to differentiate and the targeted qualities are too low and too close together." @default.
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• W2062540153 date "2001-01-01" @default.
• W2062540153 modified "2023-10-17" @default.
• W2062540153 title "Risky quality choice" @default.
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• W2062540153 doi "https://doi.org/10.1016/s0167-7187(99)00012-0" @default.
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