Selection of Product Line Qualities and Prices to Signal Competitive Advantage
研究企业如何通过选择产品线的质量和价格来向潜在进入者传递竞争优势信号并阻止进入，发现高质量和高价格能有效传递优势，且当质量调整有成本时，优势企业仍会维持高质量高价格策略。
We investigate a firm's choice of prices and qualities of a product line to signal competitive advantage to potential entrants and to discourage entry. The market consists of customer segments with different valuations for product quality. We demonstrate that a higher quality and a higher price of each product in the line convey the firm's advantage to potential competition and prevents entry. We discuss implications for optimal product line selection when customers ‘self-select’ a product from the line. When product quality change is costly, the superior incumbent continues to select a higher quality and price for each product in the line to credibly substantiate its competitive advantage, though the distortions necessary from the optimal values are lower than before. After informative signalling and deterring entry, the firm retains the higher quality product line.