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exposita note : Price equilibrium in address models of product differentiation: unit-elastic demand

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Author Info
Martin Peitz () (Faculty of Economics and Business Administration, Goethe-University Frankfurt, Uni-PF 77, 60054 Frankfurt, GERMANY)

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Abstract

I present a class of address models of product differentiation with unit-elastic individual demand and show the existence of Nash equilibrium in prices under assumptions on utility functions and the taste and income heterogeneity across consumers. This paper complements the work by Caplin and Nalebuff (1991, Econometrica), who analyze unit demand models of product differentiation.

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Publisher Info
Article provided by Springer in its journal Economic Theory.

Volume (Year): 20 (2002)
Issue (Month): 4 ()
Pages: 849-860
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Handle: RePEc:spr:joecth:v:20:y:2002:i:4:p:849-860

Note: Received: December 28, 1998; revised version: September 5, 2001
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Related research
Keywords: Imperfect competition; Characteristics approach; Price competition; Income heterogeneity; Variable individual demand.;

Find related papers by JEL classification:
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection

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