INVESTIGATING THE QUALITY OF PRODUCTS OF DIFFERENTIATED TRADEMARK PRODUCERS (GAME THEORY APPROACH)

Naeimeh HOZOURI

PhD student of Economics,Urmia University

n.hozouri@yahoo.com

Kiumars SHAHBAZI

Professor of Economics, Urmia University

k.shahbazi@urmia.ac.ir

Abstract

Quality, as one aspect of product differentiation, is the main factor in survival and sustainability of producing firms. In this paper, two main producing firms are considered, one being the main producing firm offering high quality trademarks and the other producing low quality trademarks. Then, the game is designed for these two firms, the implications of this game are referred to, and the strategies for producers of high-quality and low-quality trademarks in terms of equilibrium price, quality, and profit are discussed. The results indicate that by increasing the production costs of each producer lead the producer of high quality trademarks to increase their quality. In addition, an increase in production costs for a low quality producer lead them to reduce their quality; however, an increase in production costs for a high quality producer leads the producer of low quality trademarks to increase their quality. Finally, the relationship between the profits of a high quality producer is directly related to the quality of its own trademark and inversely related to the low quality trademark.

Keywords: Quality, Vertical differentiation, Market entrance, Game theory

JEL classification: L15, L22, L42, C73

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AGGLOMERATION ECONOMICS AND ASYMMETRIC INFORMATION: ROLE OF INSTITUTIONS

Vinko MUŠTRA[1]

Associate professor, Faculty of Economics, Business and Tourism, University of Split

vmustra@efst.hr

Hrvoje KALINIĆ

Assistant professor, Faculty of Science, University of Split

hrvoje.kalinic@pmfst.hr

Abstract

This paper constructs the model that links agglomeration economics with information asymmetries. It extends the literature by launching the concept that explains influence of the asymmetric information on agglomeration economies by emphasizing the role of the transaction cost under institutional framework. Consequently, the predictions of the model suggesting that impact of agglomeration economies depends on stages of development highlight the importance of different approach to the agglomeration economies phenomena in developing  and developed countries.

Keywords: agglomeration economics, asymmetric information, transaction costs, institutions

JEL classification: R1, O4, D8

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[1] Corresponding author

ASSESSMENT OF INNOVATIVE POTENTIAL AS A CRITERION FOR EVOLUTION OF THE MESOECONOMIC SYSTEM

Olga MYZROVA

D.Sc. in Economics, Professor; Department of Economic Security and Innovation Development, Yuri Gagarin State Technical University of Saratov, Saratov, Russia

myzrova.stus@bk.ru

Larisa SERDYUKOVA

D.Sc. in Economics, Professor; Department of Economic Security and Innovation Development, Yuri Gagarin State Technical University of Saratov, Saratov, Russia

serdyukova.stus@ro.ru

Elena LABAZNOVA

Ph.D. in Economics, Associate Professor; Director of Institute of Social and Production Management, Yuri Gagarin State Technical University of Saratov, Saratov, Russia

labaznova.stus@ro.ru

Abstract

Under current conditions of economic development a constant and timely research into the ongoing internal and external changes, affecting the accumulation of innovative potential, as well as degree of its utilization, will speed up the processes connected with upgrading competitive advantages and economic growth rate. The aim of the work is offer methodological tools employed to estimate the innovative potential of the mesoeconomic system as a criterion which ensures development in a given direction. The results of research proved that the ability and determination to develop innovative activity is determined by the accumulated aggregate potential of the mesoeconomic system as a whole, which can be estimated across the sections including infrastructure and legal regulations, innovation and production, education and research, as well as finance and investment. The results of research were tested based on the analysis of innovation potential of Saratov region as a mesoeconomic system.

Keywords: Innovation potential, infrastructure and law, production and innovation, scientific and educational, investment and finance

JEL classification: O10, O52

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