Product Differentiation and Market Power
AbstractAssuming asymmetry across firms and constant unit costs Perloff and Salop (1985) show: If product differentiation increases, the prices rise in a symmetric equilibrium. This raise the question of whether, in general, more product differentiation leads to higher market prices. Giving up the symmetry and the constant unit costs assumptions we present examples in which at least one firm lowers its equilibrium price when product differentiation increases. We formulate a model of product differentiation and state and discuss, within the theory of supermodular games, conditions ensuring that all firms raise their prices in a Nash equilibrium if product differentiation increases.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Washington St. Louis - School of Business and Political Economy in its series Papers with number 9804.
Length: 31 pages
Date of creation: 1998
Date of revision:
Contact details of provider:
Postal: WASHINGTON UNIVERSITY IN ST-LOUIS, SCHOOL OF BUSINESS AND CENTER IN POLITICAL ECONOMY, ST-LOUIS MISSOURI 63130 U.S.A.
Web page: http://www.olin.wustl.edu/
More information through EDIRC
ENTERPRISES ; PRICES ; PRODUCTS;
Other versions of this item:
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Ward, Michael B. & Shimshack, Jay P. & Perloff, Jeffrey M. & Harris, J. Michael, 2002.
"Effects of the private-label invasion in food industries,"
22186, University Library of Munich, Germany.
- Michael B. Ward & Jay P. Shimshack & Jeffrey M. Perloff & J. Michael Harris, 2002. "Effects of the Private-Label Invasion in Food Industries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(4), pages 961-973.
- Luis C. Corchon & Clara Eugenia Garcia, 2005. "Technology Transfer In Oligopolistic Markets With Heterogeneous Goods," Economics Working Papers we057036, Universidad Carlos III, Departamento de Economía.
- Martin Peitz, 1998. "- Consumer Heterogeneity And Market Imperfections," Working Papers. Serie AD 1998-16, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Richards, Timothy J. & Hamilton, Stephen F. & Patterson, Paul M., 2010.
"Spatial Competition and Private Labels,"
Journal of Agricultural and Resource Economics,
Western Agricultural Economics Association, vol. 35(2), August.
- Richards, Timothy J. & Hamilton, Stephen F. & Patterson, Paul M., 2007. "Spatial Competition in Private Labels," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9840, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Hoernig, Steffen H., 2003. "Existence of equilibrium and comparative statics in differentiated goods Cournot oligopolies," International Journal of Industrial Organization, Elsevier, vol. 21(7), pages 989-1019, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel).
If references are entirely missing, you can add them using this form.