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Possible market entry of a firm with an additive manufacturing technology

Hartl,R.F.
; 
Kort,Peter M.
Abstract
One of the principle characteristics of additive manufacturing is that customers get access to their own design, i.e., they need not choose from a small number of standard products. The paper considers a framework where an incumbent with a standard technology produces a limited number of standard products, and faces a potential entrant with an additive manufacturing technology. We find that three different outcomes are possible: the incumbent accommodates entry while producing just one product, blockades/deters entry, or it has to leave the market due to too heavy competition from the entrant. We give conditions under which each of these outcomes will occur.
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Date
2017-12
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Tilburg University Research Output Collection
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Keywords
Market entry game, Entry deterrence, Entry accommodation, Hotelling line, Additive manufacturing, SDG 9 - Industry, Innovation, and Infrastructure
Citation
Hartl, R F & Kort, P M 2017, 'Possible market entry of a firm with an additive manufacturing technology', International Journal of Production Economics, vol. 194, pp. 190-199. https://doi.org/10.1016/j.ijpe.2017.06.013
URI
https://hdl.handle.net/20.500.14602/68539
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