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Quality Choice in Models of Vertical Differentiation

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Author Info
Wauthy, X. (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

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Abstract

In this paper, we consider a duopoly model of vertical product differentiation. Firms choose simultanously the quality of the product they sell and then compete in prices simultaneously. We offer the complete characterization of quality choices for this model and thereby give a precise content to the " principle of differentiation " in models of vertical product differentiation.

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Publisher Info
Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 1994033.

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Length: 10
Date of creation: 01 Oct 1994
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Handle: RePEc:ctl:louvir:1994033

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