Fighting strategies in a market with counterfeits

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

18 Scopus Citations
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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)49-66
Journal / PublicationAnnals of Operations Research
Volume192
Issue number1
Publication statusPublished - Jan 2012
Externally publishedYes

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. © 2010 Springer Science+Business Media, LLC.

Citation Format(s)

Fighting strategies in a market with counterfeits. / Zhang, Jie; Hong, L.Jeff; Zhang, Rachel Q.

In: Annals of Operations Research, Vol. 192, No. 1, 01.2012, p. 49-66.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review