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We study a competition of product customization between two branded firms by a game-theoretic approach.
Two branded firms have their own specific core products and our customization is defined as a continuous extension of their product line from the core product only along the "function" attribute.
We first show that in the equilibrium, branded firms should fundamentally adopt their customizations to cover the center space in the market as far as possible, regardless of the position of the competitor's core product.
Branded firms enjoy fatter margins (15% or more) and more loyal customers.Yet becoming a global brand is exceedingly hard.
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That created a context in which the branded firm could reach a deal with a would-be competitor.
But the branded firm -- the plaintiff -- then offers the generic firm -- the defendant -- what is typically a very large sum of money to settle the case.
This fact in itself is quite telling: Who better than an industry insider to know when a branded firm's claims to innovativeness are baloney?
But here was the problem: when a generic firm took steps to introduce a drug in competition with a branded drug, its very preparation was sufficient basis for the branded firm to sue it for patent infringement.
"We're homegrown and part of the local fabric, as opposed to the mass-branded firms".
Buyers are cottoning to the idea that if they buy from an already-branded firm, they know where to go for returns or for service.
(To do this, branding firms try to figure out how much of a premium consumers will pay to stay at, say, a Trump-branded hotel over a similarly-rated competitor, among other factors).
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com