Market targeting with social influences and risk aversion in a co-branding alliance
Volume: 297, Issue: 1, Pages: 301 - 318
Published: Feb 1, 2022
Abstract
We consider a fast-fashion brand that cooperates with a luxury brand, jointly launching a co-branded product. The impacts of the co-branding on the two brands’ original product lines are uncertain, and each brand can be either risk averse or risk neutral. Consumers, driven by exclusivity or conformity, are classified as either snobs or conformists. The equilibrium retail price, quality investment, and investment support are derived. The optimal...
Paper Details
Title
Market targeting with social influences and risk aversion in a co-branding alliance
Published Date
Feb 1, 2022
Volume
297
Issue
1
Pages
301 - 318
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