Product Differentiation with Multiple Qualities

Barigozzi, Francesca ; Ma, Ching-to Albert (2016) Product Differentiation with Multiple Qualities. Bologna: Dipartimento di Scienze economiche DSE, p. 43. DOI 10.6092/unibo/amsacta/5407. In: Quaderni - Working Paper DSE (1075). ISSN 2282-6483.
Full text available as:
[img]
Preview
Text(pdf)
License: Creative Commons Attribution Non-commercial

Download (772kB) | Preview

Abstract

We study subgame-perfect equilibria of the classical quality-price, multistage game of vertical product differentiation. Each firm can choose the levels of an arbitrary number of qualities. Consumers’ valuations are drawn from independent and general distributions. The unit cost of production is increasing and convex in qualities. We characterize equilibrium prices, and the equilibrium effects of qualities on the rival’s price in the general model. We present necessary and sufficient conditions for equilibrium differentiation in any of the qualities.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Barigozzi, FrancescaUniversità di Bologna0000-0002-4071-5161
Ma, Ching-to Albert
Keywords
multidimensional product differentiation, quality and price competition
Subjects
ISSN
2282-6483
DOI
Deposit date
02 Sep 2016 07:52
Last modified
08 May 2017 13:23
URI

Other metadata

Downloads

Downloads

Staff only: View the document

^