Opinion: Response to concerns about the use of DNA sequences as types in the nomenclature of prokaryotes

Rossello-Mora, Ramon, Konstantinidis, Konstantinos T., Sutcliffe, Iain and Whitman, William (2020) Opinion: Response to concerns about the use of DNA sequences as types in the nomenclature of prokaryotes. Systematic and Applied Microbiology, 43 (2). p. 126070. ISSN 0723-2020

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Abstract

We study the competition between two remanufacturers in the acquisition of used products and the sales of remanufactured products. One firm has a market advantage; we consider two separate cases where either firm could have an acquisition advantage. The problem is formulated as a simultaneous game on a market that is vertically differentiated in both acquisition and sales, where both firms decide on their respective acquisition prices for used products, and selling prices for remanufactured products. A key finding is that a market advantage is significantly more powerful than an acquisition advantage. The firm with a market advantage can preempt the entry of the other firm, even if that firm has a significant acquisition advantage, but not the other way around. This is accomplished through an aggressive acquisition strategy, where the firm with a market advantage sets significantly higher acquisition prices.

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