We consider a vertically differentiated duopoly where product quality is defined as the combination of N characteristics. Good (respectively, bad) characteristics are those which increase (decrease) utility with respect to the status quo. We prove that maximum (minimum) differentiation obtains along all characteristics respect to which marginal profits are positive (negative).
Good vs. bad characteristics in vertical differentiation / P.G. Garella, L. Lambertini. - In: ECONOMICS LETTERS. - ISSN 0165-1765. - 65:2(1999 Nov), pp. 245-248.
Good vs. bad characteristics in vertical differentiation
P.G. GarellaPrimo
;
1999
Abstract
We consider a vertically differentiated duopoly where product quality is defined as the combination of N characteristics. Good (respectively, bad) characteristics are those which increase (decrease) utility with respect to the status quo. We prove that maximum (minimum) differentiation obtains along all characteristics respect to which marginal profits are positive (negative).
File in questo prodotto:
Non ci sono file associati a questo prodotto.
Pubblicazioni consigliate
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
