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Différenciation verticale et structure du marché

  • Constantatos, Christos

    (Département d’économique, Université Laval)

  • Perrakis, Stylianos

    (Faculté d’administration, Université d’Ottawa)

In this paper, we review the literature on vertical product differentiation in connection with its impact on market structure. Two types of vertical differentiation are identified according to whether consumer unanimity over product ranking is maintained at prices reflecting average cost increments necessary to produce higher qualities. If this is the case, the finiteness property prevents market fragmentation by imposing an upper bound on the number of firms even when the fixed cost approaches zero. This situation yields absolute product differentiation advantages to the high quality producers. We focus on the implications of quality choices on entry barriers and market structure under two different assumptions on the nature of the fixed cost. Research on multiproduct firms is also reviewed. L’objectif de ce travail est de faire un survol des progrès récents sur la structure des marchés où se retrouvent plusieurs qualités du même produit. L’accent est mis sur les cas où les consommateurs demeurent unanimes quant au classement des produits, si ces derniers sont offerts à des prix reflétant les augmentations du coût moyen nécessaires pour l’amélioration de leur qualité. Les considérations stratégiques du choix des qualités sous des hypothèses alternatives, quant à la nature du coût fixe ainsi qu’en présence de firmes à plusieurs produits, sont aussi examinées.

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Article provided by Société Canadienne de Science Economique in its journal L'Actualité économique.

Volume (Year): 71 (1995)
Issue (Month): 1 (mars)
Pages: 71-98

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Handle: RePEc:ris:actuec:v:71:y:1995:i:1:p:71-98
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  7. Gabszewicz, Jean Jaskold & Thisse, Jacques-Francois, 1986. "On the Nature of Competition with Differentiated Products," Economic Journal, Royal Economic Society, vol. 96(381), pages 160-72, March.
  8. Shaked, Avner & Sutton, John, 1982. "Relaxing Price Competition through Product Differentiation," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 3-13, January.
  9. Martinez-Giralt, Xavier, 1989. "On brand proliferation with vertical differentiation," Economics Letters, Elsevier, vol. 30(4), pages 279-286, October.
  10. Motta, M., 1991. "Sunk costs and trade liberalisation," CORE Discussion Papers 1991027, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  12. GABSZEWICZ, Jean J. & GARELLA, Paolo G., . "Price search and spatial competition," CORE Discussion Papers RP -752, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  13. Constantatos, Christos & Perrakis, Stylianos, 1997. "Vertical differentiation: Entry and market coverage with multiproduct firms," International Journal of Industrial Organization, Elsevier, vol. 16(1), pages 81-103, November.
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  16. Sutton, John, 1986. "Vertical Product Differentiation: Some Basic Themes," American Economic Review, American Economic Association, vol. 76(2), pages 393-98, May.
  17. sutton, John, 1989. "Endogenous sunk costs and the structure of advertising intensive industries," European Economic Review, Elsevier, vol. 33(2-3), pages 335-344, March.
  18. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
  19. Shaked, Avner & Sutton, John, 1983. "Natural Oligopolies," Econometrica, Econometric Society, vol. 51(5), pages 1469-83, September.
  20. Choi, Chong Ju & Shin, Hyun Song, 1992. "A Comment on a Model of Vertical Product Differentiation," Journal of Industrial Economics, Wiley Blackwell, vol. 40(2), pages 229-31, June.
  21. Jaskold Gabszewicz, Jean & Shaked, Avner & Sutton, John & Thisse, Jacques-Francois, 1986. "Segmenting the market: The monopolist's optimal product mix," Journal of Economic Theory, Elsevier, vol. 39(2), pages 273-289, August.
  22. Salant, Stephen W, 1989. "When Is Inducing Self-selection Suboptimal for a Monopolist?," The Quarterly Journal of Economics, MIT Press, vol. 104(2), pages 391-97, May.
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  24. Shitovitz, B. & Spiegel, M. & Weber, S., 1989. "'Top of the line' quality as an optimal solution for a multi-quality monopolist," European Economic Review, Elsevier, vol. 33(8), pages 1641-1652, October.
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