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Author Info
Luca Lambertini
Piero Tedeschi

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Abstract

Using a two-period duopoly model with vertical differentiation, we show that there exists a unique subgame perfect equilibrium where the first entrant supplies a lower quality and gains higher profits than the second entrant. We also prove that this entry sequence is socially efficient.

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File URL: http://www.statistica.unimib.it/utenti/WorkingPapers/WorkingPapers/20060504.pdf
File Format: application/pdf
File Function: First version, May 2006
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Publisher Info
Paper provided by Università degli Studi di Milano-Bicocca, Dipartimento di Statistica in its series Working Papers with number 20060504.

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Length: 19 pages
Date of creation: May 2006
Date of revision:
Handle: RePEc:mis:wpaper:20060504

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Related research
Keywords: entry; vertical differentiation;

Find related papers by JEL classification:
C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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This page was last updated on 2009-11-17.

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