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Vertical differentiation with non-uniform consumers¡ distribution

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Author Info
Jean-Marc Bonnisseau () (CERMSEM)
Rim Lahmandi-Ayed () (ISG de Tunis and LEGI)

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Abstract

The note explores a vertical differentiation model with continuous non-uniform consumers' distribution. First some results concerning the finiteness property obtained with uniform consumers' distribution are generalized. Second we prove an existence result of price equilibrium when the distribution is concave. Finally we exhibit a counter-example to the existence of price equilibrium to show the importance of the concavity assumption on the distribution.

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File URL: ftp://mse.univ-paris1.fr/pub/mse/cahiers2004/B04114.pdf
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Publisher Info
Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number b04114.

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Length: 14 pages
Date of creation: Dec 2004
Date of revision:
Handle: RePEc:mse:wpsorb:b04114

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Related research
Keywords: Vertical differentiation; non-uniform distribution; price equilibrium existence;

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Find related papers by JEL classification:
D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Lahmandi-Ayed, Rim, 2000. "Natural Oligopolies: A Vertical Differentiation Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(4), pages 971-87, November.
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  2. Rim Lahmandi-Ayed, 2004. "Finiteness property in vertically differentiated markets: a note on locally increasing and decreasing returns," Economic Theory, Springer, vol. 23(2), pages 371-382, January. [Downloadable!] (restricted)
  3. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August. [Downloadable!] (restricted)
  4. Acharyya, Rajat, 1998. "Monopoly and product quality: Separating or pooling menu?," Economics Letters, Elsevier, vol. 61(2), pages 187-194, November. [Downloadable!] (restricted)
  5. Shaked, Avner & Sutton, John, 1983. "Natural Oligopolies," Econometrica, Econometric Society, vol. 51(5), pages 1469-83, September. [Downloadable!] (restricted)
  6. Kim, Joo-Han & Kim, Jae-Cheol, 1996. "Quality choice of multiproduct monopolist and spill-over effect," Economics Letters, Elsevier, vol. 52(3), pages 345-352, September. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. David Encaoua & Abraham Hollander, 2007. "First-Degree Discrimination by a Duopoly: Pricing and Quality Choice," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00177604_v1, HAL. [Downloadable!]
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