Aggregation in a Model of Price Competition
AbstractIn a model of price competition single-product Â¯rms compete for consumers. Consumerspurchase a variable quantity of one of the diÂ®erentiated goods. The paper provides results onequilibrium existence when consumers are heterogeneous in their evaluation of the diÂ®erentiatedgoods among each other, their evaluation of the diÂ®erentiated goods relative to the outside good,and heterogeneous in income. Furthermore, I provide suÂ±cient conditions for dominance solvabilityand monotone comparative statics.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Theory.
Volume (Year): 90 (2000)
Issue (Month): 1 (January)
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Web page: http://www.elsevier.com/locate/inca/622869
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