Concurrence en catalogue dans le duopole d'Hotelling
AbstractWe study a duopoly on a market with horizontal differentiation where firms compete in catalog : firms choose a price and a location in the consumer? space. Whereas there is no equilibrium in pure strategy for the simultaneous game, we show that an equilibrium always exists in a sequential competition. In this subgame perfect equilibrium the leader chooses a more specific product at a lower price than the follower. Thus the leader earns finally less than the follower. This introduces a tension between the temptation of attrition, which leads to an unstable configuration, and the will to guarantee a stricly positive profit. Classification JEL : L11, H41, D43, M3.
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Bibliographic InfoArticle provided by Presses de Sciences-Po in its journal Revue économique.
Volume (Year): 57 (2006)
Issue (Month): 3 ()
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Find related papers by JEL classification:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- M3 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising
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