On the consistent use of linear demand systems if not all varieties are available
AbstractLinear 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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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 6405.
Date of creation: 27 Oct 2007
Date of revision:
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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-01-05 (All new papers)
- NEP-COM-2008-01-05 (Industrial Competition)
- NEP-MIC-2008-01-05 (Microeconomics)
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