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Market Coverage (market + coverage)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting85%

Selected Abstracts

A NOTE ON MARKET COVERAGE IN VERTICAL DIFFERENTIATION MODELS WITH FIXED COSTS

BULLETIN OF ECONOMIC RESEARCH, Issue 1 2008
Pei-Cheng Liao
L11; L13 ABSTRACT With fixed costs of quality improvement, we find that a covered market outcome with an interior solution in the price stage is not a Nash equilibrium. When the degree of consumer heterogeneity is high (low) enough, an uncovered market outcome (a covered market outcome with a corner solution in the price stage) is the only Nash equilibrium. When the degree of consumer heterogeneity is moderate, both of the two market outcomes are Nash equilibria, but an uncovered market outcome yields higher social welfare than a covered market outcome with a corner solution in the price stage. [source]

Channel Strategies and Stocking Policies in Uncapacitated and Capacitated Supply Chains,

DECISION SCIENCES, Issue 2 2002
Jayashree Mahajan
ABSTRACT A supply chain consisting of a single supplier distributing two independent products through multiple retailers is analyzed in this paper. The supplier needs to incentivize its retailers to adopt stocking policies that are mutually advantageous and that result in the optimal level of market coverage. The focus is on determining the optimal stocking policies for retailers and the resulting distribution strategy given that the supplier has either unlimited or limited capacity. The results provide insights on the optimal distribution strategy and stocking policies for the supply chain. In general, the paper shows that it is optimal for the supplier to use an intensive distribution strategy (i.e., the products are stocked by all retailers). Selective or exclusive strategies are optimal only when retailers are risk averse, stocking synergies exist, and there are differences in demand or supply uncertainties across products. The analysis also shows that retailers hold larger stocks of a product which generates higher supplier margins but only when the supplier has unlimited capacity. If the supplier has limited capacity, then their margins have no effect on retailers' stocking decisions. Contrary to conventional wisdom, retailers hold larger stocks of a product that has less demand uncertainty as compared to one that has more demand uncertainty. [source]

Price competition under universal service obligations

INTERNATIONAL JOURNAL OF ECONOMIC THEORY, Issue 3 2010
Axel Gautier
L13; L51 In industries like telecom, postal services or energy provision, universal service obligations (uniform price and universal coverage) are often imposed on one market participant. Universal service obligations are likely to alter firms' strategic behavior in such competitive markets. In the present paper, we show that, depending on the entrant's market coverage and the degree of product differentiation, the Nash equilibrium in prices involves either pure or mixed strategies. We show that the pure strategy market sharing equilibrium, as identified by Valletti, Hoernig, and Barros (2002), defines a lower bound on the level of equilibrium prices. [source]

Adopting Lead-Free Electronics: Policy Differences and Knowledge Gaps

JOURNAL OF INDUSTRIAL ECOLOGY, Issue 4 2004
Julie M. Schoenung
For more than a decade, the use of lead (Pb) in electronics has been controversial: Indeed, its toxic effects are well documented, whereas relatively little is known about proposed alternative materials. As the quantity of electronic and electrical waste (e-waste) increases, legislative initiatives and corporate marketing strategies are driving a reduction in the use of some toxic substances in electronics. This article argues that the primacy of legislation over engineering and economics may result in selecting undesirable replacement materials for Pb because of overlooked knowledge gaps. These gaps include the need for: assessments of the effects of changes in policy on the flow of e-waste across state and national boundaries; further reliability testing of alternative solder alloys; further toxicology and environmental impact studies for high environmental loading of the alternative solders (and their metal components); improved risk assessment methodologies that can capture complexities such as changes in waste management practices, in electronic product design, and in rate of product obsolescence; carefully executed allocation methods when evaluating the impact of raw material extraction; and in-depth risk assessment of alternative end-of-life (EOL) options. The resulting environmental and human health consequences may be exacerbated by policy differences across political boundaries. To address this conundrum, legislation and policies dealing with Pb in electronics are first reviewed. A discussion of the current state of knowledge on alternative solder materials relative to product design, environmental performance, and risk assessment follows. Previous studies are reviewed, and consistent with their results, this analysis finds that there is great uncertainty in the trade-offs between Pb-based solders and proposed replacements. Bridging policy and knowledge gaps will require increased international cooperation on materials use, product market coverage, and e-waste EOL management. [source]

Pareto-Improving Redistribution in a Monopoly

THE JAPANESE ECONOMIC REVIEW, Issue 2 2003
Jacques Thépot
This paper discusses the impact of income transfers between consumers of a monopoly. In this context, redistributing the incomes could induce an increase of the demand elasticity which leads to a lower monopoly price, beneficial to any consumer. Under mild assumptions on the demand function, we prove the existence of a transfer maximizing the market coverage which remains advantageous for any contributing consumer. It is proved that the producer is also better off. Then the transfer is Pareto-improving. In the linear demand case, analytical results are found. Extensions to Cournot oligopoly and natural monopoly pricing are considered. JEL Classification Numbers: D31, D64, H2, L13 [source]

Success in Global New Product Development: Impact of Strategy and the Behavioral Environment of the Firm

THE JOURNAL OF PRODUCT INNOVATION MANAGEMENT, Issue 2 2010
Ulrike De Brentani
Product innovation and the trend toward globalization are two important dimensions driving business today, and a firm's global new product development (NPD) strategy is a primary determinant of performance. Succeeding in this competitive and complex market arena calls for corporate resources and strategies by which firms can effectively tackle the challenges and opportunities associated with international NPD. Based on the resource-based view (RBV) and the entrepreneurial strategic posture (ESP) literature, the present study develops and tests a model that emphasizes the resources of the firm as primary determinants of competitive advantage and, thus, of superior performance through the strategic initiatives that these enable. In the study, global NPD programs are assessed in terms of three dimensions: (1) the organizational resources or behavioral environment of the firm relevant for international NPD,specifically, the global innovation culture of the firm and senior management involvement in the global NPD effort; (2) the global NPD strategies (i.e., global presence strategy and global product harmonization strategy) chosen for expanding and exploiting opportunities in international markets; and (3) global NPD program performance in terms of shorter- and longer-term outcome measures. These are modeled in antecedent terms, where the impact of the resources on performance is mediated by the NPD strategy of the firm. Based on data from 432 corporate global new product programs (North America and Europe, business-to-business, services and goods), a structural model testing for the hypothesized mediation effects was substantially supported. Specifically, having an organizational posture that, at once, values innovation plus globalization, as well as a senior management that is active in and supports the international NPD effort leads to strategic choices that are focused on making the firm truly global in terms of both market coverage and product offering. Further, the two strategies,global presence and global product harmonization,were found to be significant mediators of the firm's behavioral environment in terms of impact on performance of global NPD programs. [source]

Vertically Differentiated Monopoly with a Positional Good

AUSTRALIAN ECONOMIC PAPERS, Issue 2 2002
Luca Lambertini
We analyse positional effects in a monopoly market with vertical differentiation, comparing monopoly and social planning. The provision of quality under monopoly depends upon the relative size of positional effects and the hedonic evaluation of quality. An elitarian equilibrium where quality increases in the level of positional concern emerges under monopoly, only if the market is sufficiently rich. Under social planning, quality increases in the level of positional externality, independently of market affluency. As long as partial market coverage obtains under both regimes, the monopoly deadweight loss decreases as the positional externality becomes more relevant. [source]