We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Measuring Deterrence Motives in Dynamic Oligopoly Games.
- Authors
Fang, Limin; Yang, Nathan
- Abstract
This paper presents a novel decomposition approach for measuring deterrence motives in dynamic oligopoly games. Our approach yields a formalized, scale-free, and interpretable measure of deterrence motives that informs researchers about the proportion for which deterrence motives account of all entry motives. In addition, the decomposition leads to a set of conditions for counterfactual analysis where hypothetical scenarios with deterrence motives eliminated can be explored. We illustrate the use of our measure and counterfactual by conducting an empirical case study about the dynamics of coffee chain stores in Toronto, Canada. The inferred deterrence motives suggest that a noticeable proportion of entry motives can be attributed to deterrence; it can be as high as 43% for the increasingly dominant coffee chain, Starbucks, in certain types of markets. Finally, counterfactual analysis confirms that deterrence motives are indeed associated with Starbucks' aggressive presence as the number of its outlets and its market share are markedly lower once these motives are eliminated. This paper was accepted by Matthew Shum, marketing. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2023.4864.
- Subjects
TORONTO (Ont.); STARBUCKS Corp.; OLIGOPOLIES; CHAIN stores; MARKET share; COUNTERFACTUALS (Logic); RESEARCH personnel; COFFEE plantations
- Publication
Management Science, 2024, Vol 70, Issue 6, p3527
- ISSN
0025-1909
- Publication type
Article
- DOI
10.1287/mnsc.2023.4864