A Model of Product Proliferation with Multiproduct Firms
研究了多产品企业如何决定新产品引入数量,发现引入成本越高、竞争对手越多,企业产品数和利润越低,但市场总产品数增加。
This paper presents a model of product proliferation by multiproduct firms. Firm behavior is based on a two-stage process in which there is centralized decision making in new product introductions and decentralized management of existing products. In equilibrium, the number of products each firm has, as well as its total profits, are inversely related to the cost of introducing a new product and to the number of firms in the market. But, as the number of rivals increases, the total number of products in the market increases, although total industry profits decrease. Copyright 1987 by Blackwell Publishing Ltd.