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Duopoly Models With Vertical Product Differentiation

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  • DAVE FURTH

    ()
    (Faculty of Economics and Business, University of Amsterdam, Roetersstraat 11, 1018 WB Amsterdam, The Netherlands)

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    Abstract

    This paper deals with duopoly models with vertical product differentiation. These are two-stage games. In the first stage, the quality game, the two firms choose their quality. In the second stage, the price game, they choose their prices. When the market is covered, the properties of this game are well known, even when the consumers are not uniformly distributed. When the market is uncovered the literature is not always clear about these models. In the present paper it is shown that the price game can be solved, when the consumers are distributed according to a distribution function with a log-concave density function.

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    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Game Theory Review.

    Volume (Year): 13 (2011)
    Issue (Month): 02 ()
    Pages: 121-140

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    Handle: RePEc:wsi:igtrxx:v:13:y:2011:i:02:p:121-140

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    Related research

    Keywords: Duopoly; vertical product differentiation; L13;

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