Resumen de Vertical Differentiation and Entry Deterrence: A Reconsideration

Lander Beloki Mendizabal, José María Usategui Díaz de Otalora

• In this work we emphasize why market coverage should be considered endogenous for a correct analysis of entry deterrence in vertical differentiation models and discuss the implications of this endogeneity for that analysis. We consider contexts without quality costs and also contexts with convex fixed quality costs.