Vertical differentiation with non-uniform consumers¡ distribution
AbstractThe 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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Bibliographic InfoPaper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number b04114.
Length: 14 pages
Date of creation: Dec 2004
Date of revision:
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Vertical differentiation; non-uniform distribution; price equilibrium existence;
Other versions of this item:
- Jean-Marc Bonnisseau & Rim Lahmandi-Ayed, 2007. "Vertical differentiation with non-uniform consumers' distribution," International Journal of Economic Theory, The International Society for Economic Theory, vol. 3(3), pages 179-190.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-04-16 (All new papers)
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