Price equilibrium in address models of product differentiation: unit-elastic demand
I present a class of address models of product differentiation with unit-elastic individual demand and show the existence of Nash equilibrium in prices under assumptions on utility functions and the taste and income heterogeneity across consumers. This paper complements the work by Caplin and Nalebuff (1991, Econometrica), who analyze unit demand models of product differentiation.
Volume (Year): 20 (2002)
Issue (Month): 4 ()
|Note:||Received: December 28, 1998; revised version: September 5, 2001|
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