Quality and Quantity Competition
AbstractThis article develops an oligopoly model where both prices and quality levels are determined at the equilibrium. Multiple symmetric equilibria arise when the distribution of consumers according to their willingness to pay is not uniform and more than one firm participates in the market. With a uniform distribution, we demonstrate that the impact of entry is to reduce average quality and to increase aggregate output. The implications for social welfare are ambiguous.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by The RAND Corporation in its journal Bell Journal of Economics.
Volume (Year): 14 (1983)
Issue (Month): 2 (Autumn)
Contact details of provider:
Web page: http://www.rje.org
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Justin P. Johnson & David P. Myatt, 2003.
"Multiproduct Quality Competition: Fighting Brands and Product Line Pruning,"
American Economic Review,
American Economic Association, vol. 93(3), pages 748-774, June.
- David P. Myatt & Justin P. Johnson, 2002. "Multiproduct Quality Competition: Fighting Brands and Product Line Pruning," Economics Series Working Papers 105, University of Oxford, Department of Economics.
- Hervas-Drane, Andres, 2011. "Non-cost-raising discrimination: A rationale for functional separation in broadband open access," IESE Research Papers D/942, IESE Business School.
- Ramon Casadesus-Masanell & Feng Zhu, 2009. "Strategies to Fight Ad-sponsored Rivals," Working Papers 09-09, NET Institute, revised Sep 2009.
- Brekke, Kurt R. & Siciliani, Luigi & Straume, Odd Rune, 2014.
"Horizontal Mergers and Product Quality-,"
Discussion Paper Series in Economics
4/2014, Department of Economics, Norwegian School of Economics.
- Panu Poutvaara & Andreas Wagener, 2004.
"The Invisible Hand Plays Dice: Eventualities in Religious Markets,"
- Panu Poutvaara & Andreas Wagener, 2004. "The Invisible Hand Plays Dice: Eventualities in Religious Markets," CESifo Working Paper Series 1238, CESifo Group Munich.
- Chen, Chialin & Liu, Lucy Qian, 2014. "Pricing and quality decisions and financial incentives for sustainable product design with recycled material content under price leadership," International Journal of Production Economics, Elsevier, vol. 147(PC), pages 666-677.
- Rasha Ahmed & Kathleen Segerson, 2006. "Collective Voluntary Agreements and the Production of Less Polluting Products," Working papers 2006-18, University of Connecticut, Department of Economics, revised May 2007.
- Chisholm, Darlene C. & Norman, George, 2012. "Market access and competition in product lines," International Journal of Industrial Organization, Elsevier, vol. 30(5), pages 429-435.
- Rasha Ahmed & Kathleen Segerson, 2007. "Emissions Control and the Regulation of Product Markets: The Case of Automobiles," Working papers 2007-40, University of Connecticut, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.