
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:Consumer preferences are
changed
A firm that is a leader in an
industry obtains a higher
profit in a
dynamic/sequential game
relative to competitors
Consumers do not agree X
is preferred to Y when both
products are priced at the
same value
Consumers agree X is
preferred to Y when both
products have equal prices
Industry with monopoly and
perfect competition
characteristics
One time cost to enter an
1. Vertical product differentiation
2. Persuasive advertising
3. Horizontal product differentiation.
4. Monopolistic competition industry
5. First mover advantage
6. Exogenous sunk cost
7. Endogenous sunk cost
8. Second mover advantage
9. Informative advertising
€

Transcribed Image Text:A firm that is a leader in an
industry obtains a higher
profit in a
dynamic/sequential game
relative to competitors
Consumers do not agree X
is preferred to Y when both
products are priced at the
same value
Consumers agree X is
preferred to Y when both
products have equal prices
Industry with monopoly and
perfect competition
characteristics
One time cost to enter an
industry is treated as a
parameter of the model
1. Vertical product differentiation
2. Persuasive advertising
3. Horizontal product differentiation
4. Monopolistic competition industry
5. First mover advantage
6. Exogenous sunk cost
7. Endogenous sunk cost
8. Second mover advantage
9. Informative advertising
目
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