Lambertini, Luca
(1992)
The Contestability Paradigm in the Presence of Vertical Differentiation: Entering the Incumbent's Quality Niche.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 29.
DOI 10.6092/unibo/amsacta/5225.
In: Quaderni - Working Paper DSE
(135).
ISSN 2282-6483.
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Abstract
The aim of this paper is to analyse the interaction between vertical differentiation and contestability in the context of a repeated game with discounting. It is shown that, if consumers retaliate after hit-and-round entry and suppliers and reasonably low discount rates, contestability may not hold.
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