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Lambertini, Luca ; Orsi, Raimondello
(1998)
Vertical Differentiation With A Positional Good.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 18.
DOI 10.6092/unibo/amsacta/5002.
In: Quaderni - Working Paper DSE
(306).
ISSN 2282-6483.
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Abstract
We investigate the role of positional effects in a market for vertically differentiated goods. We consider the two alternative settings, a single-product monopoly and a single-product duopoly. We evaluate the performance of both regimes against social planning. Contrary to conventional wisdom, we establish that it can be socially inefficient to expand the product range.
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