Oligopoly, Endogenous Monopolist and Product Quality
This paper investigates an oligopolistic market with vertical product differentiation, where qualities are represented by a uni-dimensional interval. We examine the Nash equilibrium in the oligopoly game with a finite number of consumers, where each firm uses its technology and can offer a range of quality-price pairs, and firms' profits are determined by the consumers' selection choice. We show that under the standard conditions on consumers' preferences at most one firm with a positive profit can be active in equilibrium. In contrast, we present an example of a duopoly game with a continuum of consumers, in which both firms yield positive profits in an equilibrium. Finally, we analyze in the linear case the question of existence.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 7 (2007)
Issue (Month): 1 (August)
|Contact details of provider:|| Web page: https://www.degruyter.com|
|Order Information:||Web: https://www.degruyter.com/view/j/bejte|
When requesting a correction, please mention this item's handle: RePEc:bpj:bejtec:v:7:y:2007:i:1:n:31. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.