Beyond the Uniform Distribution: Equilibrium Prices and Qualities in a Vertically Differentiated Duopoly

Benassi, Corrado ; Chirco, Alessandra ; Colombo, Caterina (2015) Beyond the Uniform Distribution: Equilibrium Prices and Qualities in a Vertically Differentiated Duopoly. Bologna: Dipartimento di Scienze economiche DSE, p. 30. DOI 10.6092/unibo/amsacta/4424. In: Quaderni - Working Paper DSE (1044). ISSN 2282-6483.
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Abstract

The paper proves the existence of a subgame perfect Nash equilibrium in a vertically differentiated duopoly with uncovered market, for a large set of symmetric and asymmetric distributions of consumers, including, among others, all logconcave distributions. The proof relies on the ’income share elasticity’ representation of the consumers’ density function, which ensures the analytical tractability of the firms’ optimality conditions at a high level of generality. Some illustrative examples of the solution are offered, in order to assess the impact of distributive shocks on the equilibrium market configuration.

Abstract
Tipologia del documento
Monografia (Working paper)
Autori
AutoreAffiliazioneORCID
Benassi, Corrado
Chirco, Alessandra
Colombo, Caterina
Parole chiave
Vertical differentiation, duopoly, non-uniform distribution, subgame perfect equilibrium, income share elasticity
Settori scientifico-disciplinari
ISSN
2282-6483
DOI
Data di deposito
22 Dic 2015 09:47
Ultima modifica
22 Dic 2015 09:47
URI

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