Publication
Title
Product line rivalry and market segmentation : with an application to automobile optional engine pricing
Author
Abstract
This paper addresses the questions whether and when the pricing practices on base products may differ from those of premium products, sold with options or add-ons. Various alternative models are considered: a monopoly model, a model of brand rivalry with full consumer information and a model of rivalry in which consumers are only well informed about base product prices. Only the brand rivalry model with limited consumer information predicts that premium products have larger percentage markups than base products, provided that brand rivalry is sufficiently intense. Empirical evidence on base and premium product pricing in the automobile market is consistent with the limited information model and inconsistent with the other two models.
Language
English
Source (journal)
The journal of industrial economics. - Oxford
Publication
Oxford : 1999
ISSN
0022-1821 [print]
1467-6451 [online]
Volume/pages
47:4(1999), p. 399-425
ISI
000084024400002
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 03.01.2013
Last edited 16.08.2017
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