The Double Marginal Effect between Established National Brands and Emerging Brands

DOI

10.2991/978-94-6463-506-5_24How to use a DOI?

Keywords

joint venture; double marginal effect; horizontal difference model

Abstract

Based on the double marginal effect model caused by the joint venture of MOUTAI and Luckin, a sequential game model is established to consider whether to joint venture. In the context of the development of the market by various brands, a horizontal difference model is established to explore the optimal decision of the new and old brands to joint venture and the impact on the two brands. The main factors affecting the brand to expand the specific market are investigated. The conclusion shows that the joint venture of the new brand (Luckin) and the old brand (MOUTAI) is a win-win decision, which promotes the understanding of the young people to MOUTAI, broadens the MOUTAI (old brand) in the dynamic main consumer market, improves the sales volume and profit of Luckin, and finally weakens the double marginal effect, improves the living environment of the new and old brands, and improves the viability.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Yuchen Zhu
PY  - 2024
DA  - 2024/09/02
TI  - The Double Marginal Effect between Established National Brands and Emerging Brands
BT  - Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024)
PB  - Atlantis Press
SP  - 210
EP  - 216
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-506-5_24
DO  - 10.2991/978-94-6463-506-5_24
ID  - Zhu2024
ER  -