Endogenous Choice Between Horizontal and Vertical Product Differentiation

Lambertini, Luca (1993) Endogenous Choice Between Horizontal and Vertical Product Differentiation. Bologna: Dipartimento di Scienze economiche DSE, p. 28. DOI 10.6092/unibo/amsacta/5186. In: Quaderni - Working Paper DSE (171). ISSN 2282-6483.
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Abstract

The endogenous choice between two alternative kinds of product differentiation is addressed in a duopoly model where firms are free to locate along the real axis, while consumers are distributed along a linear city of finite length. It turns out that the nature of differentiation may be heavily affected by the sequence of decisions. If firms simultaneously choose first locations and then prices, product differentiation at equilibrium is horizontal. If instead one firm acts as a Stackelberg leader in both stages, product differentiation at equilibrium is vertical.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Lambertini, Luca0000-0001-6353-4753
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ISSN
2282-6483
DOI
Deposit date
10 Jun 2016 09:27
Last modified
10 Jun 2016 09:27
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