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On the consistent use of linear demand systems if not all varieties are available

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Author Info
Höffler, Felix
Abstract

Linear demand formulations for price competition in horizontally differentiated products are sometimes used to compare situations where additional varieties become available, e. g. due to market entry of new firms. We derive a consistent demand system to analyze such situations.

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File URL: http://mpra.ub.uni-muenchen.de/6405/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6405.

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Date of creation: 27 Oct 2007
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Handle: RePEc:pra:mprapa:6405

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Related research
Keywords: Horizontal product differentiation preferences for variety market entry

Find related papers by JEL classification:
D1 - Microeconomics - - Household Behavior
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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