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- Title
Optimal Segmentation over a Generalized Customer Distribution.
- Authors
Ou, Tsung-Yin; Chen, Yenming J.
- Abstract
This paper investigates the impact of consumer preferences on the intensity of competition for companies in a duopoly market. A classical Hotelling's competition problem will be different if consumers are allowed to distribute non-uniformly. New results in competition intensity are established and conditions for the existence of a subgame perfect Nash equilibrium is identified through a model that considers generic distribution in consumer preferences. A competition strategy is demonstrated to depend on the signs of local change rates of the density function at the endpoints of market segments.
- Subjects
CONSUMER preferences; NASH equilibrium
- Publication
Axioms (2075-1680), 2021, Vol 10, Issue 2, p98
- ISSN
2075-1680
- Publication type
Article
- DOI
10.3390/axioms10020098