Structural analysis of competitive behavior: New Empirical Industrial Organization methods in marketing (original) (raw)

Analytical Models of Competition with Implications for Marketing: Issues, Findings, and Outlook

Journal of Marketing Research, 1985

The authors review a representative cross-section of analytical models of competition using a framework for competitive analysis developed from a marketing perspective. Models are classified by the substantive issues they address and by the underlying modeling strategy. The implications of the various models are presented and discussed, and a set of empirically testable propositions is given. Some substantive areas that have been neglected by analytical modelers are identified. Other issues that warrant research attention by marketing behavioral scientists and econometricians are suggested as opportunities for future research.

Market Structure and Market Performance in E-Commerce

2012

We investigate the causal effect of market structure on market performance in the consumer electronics. We combine data from Austria's largest online site for price comparisons with retail data on wholesale prices provided by a major hardware producer for consumer electronics. We observe input prices of firms, and all their moves in the entry and the pricing game over the whole product lifecycle. Using this information for 70 digital cameras, we generate instrumental variables for the number of firms in the market based on the shops' entry decisions on other product markets in the past. We find that instrumenting is particularly important for estimating the effect of competition on the markup of the price leader.

The Theory of Multimarket Competition: A Synthesis and Implications for Marketing Strategy

Journal of Marketing, 1999

Multimarket competition refers to competitive situations in which the same firms compete against each other in multiple markets. The theory of multimarket competition suggests that the phenomenon of mutual forbearance may reduce the market-level intensity of competition between two firms when the multimarket contact between them (the number of markets in which they compete) increases. Mutual forbearance, a form of tacit collusion in which firms avoid competitive attacks against those rivals they meet in multiple markets, is proposed to occur because multimarket competition increases the familiarity between firms and their ability to deter each other. In this article, the authors examine how multimarket contact increases familiarity and deterrence. Furthermore, they provide an extension of the theory of multimarket competition by developing a conceptual model that identifies competitive and market factors that moderate the relationship between the degree of multimarket contact and the intensity of competition. The authors also examine the implications of multimarket competition for marketing strategy in the context of two marketing strategy issues: product line rivalry and entry strategy.

Competitive Response and Market Evolution

Handbook of Marketing, 2002

A working paper in the INSEAD Working Paper Series is intended as a means whereby a faculty researcher's thoughts and findings may be communicated to interested readers. The paper should be considered preliminary in nature and may require revision.

A Look on the Cost Side: Market Share and the Competitive Environment

Marketing Science, 1993

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Inferring Market Structure from Customer Response to Competing and Complementary Products

Marketing Letters, 2002

We consider customer influences on market structure, arguing that market structure should explain the extent to which any given set of market offerings are substitutes or complements. We describe recent additions to the market structure analysis literature and identify promising directions for new research in market structure analysis. Impressive advances in data collection, statistical methodology and information technology provide unique opportunities for researchers to build market structure tools that can assist “real-time” marketing decision-making.

A reflection on analytical work in marketing: Three points of consensus

Marketing Letters, 2012

People make a wide variety of choices as consumers, managers, employers, and regulators. Most of these choices are not made in a vacuum but rather in a context of strategic interactions that make individual payoffs interdependent across the decision makers. This payoff interdependence leads to intertwined individual incentives, necessitating analysis of the entire system before one can predict and understand individual behavior. Analyzing such a complex system requires a precise mathematical framework to develop intuition and qualify theoretical predictions. A commonly used analytical framework is non-cooperative game theory.

Forthcoming, Journal of Marketing

2008

California. The authors appreciate the help of Brigitte Hopstaken in data collection, Kersi Antia, Joep Arts, Andreas Eisingerich, and Gaia Rubera in data analysis, and the administrative assistance