Alma Mater Digital Library

Edited by CIB Centro Inter-Bibliotecario

cambia la lingua in italiano
AMS Acta
ISSN: 2038-7954
Contributi di ricerca dell'Alma Mater Studiorum - Università di Bologna
Login for authors

Market Coverage and the Existence of Equilibrium in a Vertically Differentiated Duopoly

Ecchia, Giulio ; Lambertini, Luca (1998) Market Coverage and the Existence of Equilibrium in a Vertically Differentiated Duopoly.

Full text disponibile come:

[img]
Preview
PDF
127Kb

Official URL: http://www.dse.unibo.it/wp/311.pdf

Abstract

The existence of a pure-strategy subgame perfect equilibrium in qualities and prices is investigated in a duopoly model of vertical differentiation where quality improvements require a quadratic variable cost. The alternative cases of partial and full market coverage are considered. It is shown that there exists a parameter range where the incentive to decrease differentiation arises for the high-quality firm, preventing firms to reach a pure-strategy duopoly equilibrium.

Document type:Monograph (Working Paper)
Uncontrolled Keywords:equilibrium existence vertical differentiation market coverage
Subjects:Area 13 - Scienze economiche e statistiche > SECS-P/01 Economia politica
Depositato da:CIB Staff
Depositato il:17 Jun 2004
Last modified:16 May 2011 13:35

Solo per lo Staff dell Archivio: Gestione del documento