IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/16873_6.html
   My bibliography  Save this book chapter

Oligopoly and product differentiation

In: Handbook of Game Theory and Industrial Organization, Volume I

Author

Listed:
  • Jean J. Gabszewicz
  • Ornella Tarola

Abstract

In this chapter, we survey some recent contributions analyzing oligopoly theory and product differentiation from the viewpoint of models of localized competition. In other words, we exclude from our analysis the field of monopolistic competition (see Thisse and Uschev, Chapter 5 in this Handbook) and oligopoly theory as in the neoclassical vein (Vives, 2000). We start by recalling some elements of the microeconomic theory of consumer demand based on characteristics, as introduced by Lancaster (1966). Then, we present successively the theory of horizontal product differentiation, based on the article by Hotelling (1929) and the theory of vertical product differentiation, based on the article by Gabszewicz and Thisse (1979). Then, we develop a model nesting both horizontal and vertical product differentiation (Gabszewicz and Wauthy, 2012). Finally, we propose two applications of this approach, one based on network externalities and the other on environmental economics.

Suggested Citation

  • Jean J. Gabszewicz & Ornella Tarola, 2018. "Oligopoly and product differentiation," Chapters, in: Luis C. Corchón & Marco A. Marini (ed.), Handbook of Game Theory and Industrial Organization, Volume I, chapter 6, pages 137-180, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:16873_6
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/9781785363276.00012.xml
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gabszewicz, Jean J. & Marini, Marco A. & Tarola, Ornella, 2017. "Vertical differentiation and collusion: Pruning or proliferation?," Research in Economics, Elsevier, vol. 71(1), pages 129-139.
    2. Gabszewicz, Jean J. & Marini, Marco A. & Tarola, Ornella, 2016. "Vertical Differentiation and Collusion: Cannibalization or Proliferation?," ETA: Economic Theory and Applications 232221, Fondazione Eni Enrico Mattei (FEEM).
    3. Giulia Ceccantoni & Ornella Tarola & Cecilia Vergari, 2023. "Tax and pollution in a vertically differentiated duopoly: When consumers matter," Metroeconomica, Wiley Blackwell, vol. 74(2), pages 416-445, May.

    More about this item

    Keywords

    Economics and Finance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:eechap:16873_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.