Fighting strategies in a market with counterfeits

Fighting strategies in a market with counterfeits

0.00 Avg rating0 Votes
Article ID: iaor201113466
Volume: 192
Issue: 1
Start Page Number: 49
End Page Number: 66
Publication Date: Jan 2012
Journal: Annals of Operations Research
Authors: , ,
Keywords: simulation: applications, stochastic processes
Abstract:

Counterfeiting is a widely spread phenomenon and has seen rapid growth in recent years. In this paper, we adopt the standard vertical differentiation model and allow consumers the choices of purchasing an authentic product, purchasing a counterfeit, or not buying. We focus on how non‐deceptive counterfeits, which consumers know at time of purchase that the products are counterfeits with certainty, affect the price, market share and profitability of brand name products. We also consider the strategies for brand name companies to fight counterfeiting. We compare different fighting strategies in a market with one brand name product and its counterfeit, and derive equilibrium fighting strategies in a market with two competing brand name products and a counterfeit under general conditions.

Reviews

Required fields are marked *. Your email address will not be published.