TY - JOUR
T1 - Fighting strategies in a market with counterfeits
AU - Zhang, Jie
AU - Hong, L. Jeff
AU - Zhang, Rachel Q.
PY - 2012/1
Y1 - 2012/1
N2 - 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.
AB - 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.
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U2 - 10.1007/s10479-010-0768-0
DO - 10.1007/s10479-010-0768-0
M3 - Article
AN - SCOPUS:82955225034
SN - 0254-5330
VL - 192
SP - 49
EP - 66
JO - Annals of Operations Research
JF - Annals of Operations Research
IS - 1
ER -