IDEAS home Printed from https://ideas.repec.org/a/wsi/igtrxx/v13y2011i02ns0219198911002903.html
   My bibliography  Save this article

Duopoly Models With Vertical Product Differentiation

Author

Listed:
  • DAVE FURTH

    (Faculty of Economics and Business, University of Amsterdam, Roetersstraat 11, 1018 WB Amsterdam, The Netherlands)

Abstract

This paper deals with duopoly models with vertical product differentiation. These are two-stage games. In the first stage, the quality game, the two firms choose their quality. In the second stage, the price game, they choose their prices. When the market is covered, the properties of this game are well known, even when the consumers are not uniformly distributed. When the market is uncovered the literature is not always clear about these models. In the present paper it is shown that the price game can be solved, when the consumers are distributed according to a distribution function with a log-concave density function.

Suggested Citation

  • Dave Furth, 2011. "Duopoly Models With Vertical Product Differentiation," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 121-140.
    • Handle: RePEc:wsi:igtrxx:v:13:y:2011:i:02:n:s0219198911002903
    DOI: 10.1142/S0219198911002903
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219198911002903
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219198911002903?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. -, 1997. "Major statistical publications: abstracts," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 27418, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    3. Unknown, 1997. "Arer Reviewers, June 1996-May 1997," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(2), pages 1-1, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nikolay Zenkevich & Margarita Gladkova, 2016. "Price Competition on the Market of Counterfeiting Software," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 18(02), pages 1-10, June.
    2. Corrado Benassi & Alessandra Chirco & Caterina Colombo, 2019. "Vertical differentiation beyond the uniform distribution," Journal of Economics, Springer, vol. 126(3), pages 221-248, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pravakar Sahoo & Rajiv Kumar, 2011. "The Impact Of Commodity Transaction Tax On Futures Trading In India: An Ex-Ante Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 56(03), pages 423-440.
    2. A. Bershadskii & E. Dremencov & J. Bershadskii & G. Yadid, 2003. "Brain Neurons As Quantum Computers: In Vivosupport Of Background Physics," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 14(07), pages 897-904.
    3. Colin Jones & Rob Hecker, 2003. "e-EXTINCTION: AN ILLUSION OF KNOWLEDGE, THE PRESENCE OF IGNORANCE, OR EVOLUTIONARY FATE?," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 11(04), pages 359-378.
    4. Yingjie Xia & Yinzuo Zhou, 2014. "Synchronization induced by disorder of phase directions," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 25(05), pages 1-8.
    5. Reginald D. Smith, 2011. "The Dynamics Of Internet Traffic: Self-Similarity, Self-Organization, And Complex Phenomena," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 14(06), pages 905-949.
    6. Hongbin Zhang & Chunguang Li & Guanrong Chen & Xing Gao, 2005. "Hyperchaos In The Fractional-Order Nonautonomous Chen'S System And Its Synchronization," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 16(05), pages 815-826.
    7. Craig Parsons, 2005. "The Effect Of The Semiconductor Trade Agreement On Japanese Firms," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 50(01), pages 117-129.
    8. M. F. Carusela & L. Romanelli, 2008. "Phase Behavior In A Ring Of Stochastic Oscillators," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 55-64.
    9. Oscar Gutiérrez & Francisco Ruiz-Aliseda, 2011. "Real options with unknown-date events," Annals of Finance, Springer, vol. 7(2), pages 171-198, May.
    10. E. Villemeur & Helmuth Cremer & Bernard Roy & Joëlle Toledano, 2007. "Worksharing, access and bypass: the structure of prices in the postal sector," Journal of Regulatory Economics, Springer, vol. 32(1), pages 67-85, August.
    11. Jianqiang Zhang & Weijun Zhong & Shue Mei, 2012. "Competitive effects of informative advertising in distribution channels," Marketing Letters, Springer, vol. 23(3), pages 561-584, September.
    12. Donna, Javier D. & Pereira, Pedro & Trindade, Andre & Yoshida, Renan C., 2020. "Direct-to-Consumer Sales by Manufacturers and Bargaining," MPRA Paper 105773, University Library of Munich, Germany.
    13. Francisco B. Galarza & Gabriella Wong, 2017. "The Impact of Price Information on Consumer Behavior: An Experiment," Working Papers 106, Peruvian Economic Association.
    14. repec:cdl:compol:qt9pt7p9bm is not listed on IDEAS
    15. Kessing, Sebastian G. & Konrad, Kai A. & Kotsogiannis, Christos, 2006. "Federal tax autonomy and the limits of cooperation," Journal of Urban Economics, Elsevier, vol. 59(2), pages 317-329, March.
    16. Etienne Billette de Villemeur & Kevin Guittet, 2004. "Optimal structure of air transport services when environnemental costs are taken into account," Post-Print hal-01022242, HAL.
    17. Aurora García‐Gallego & Nikolaos Georgantzís, 2009. "Market Effects of Changes in Consumers' Social Responsibility," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(1), pages 235-262, March.
    18. Simon P. Anderson & Régis Renault, 2011. "Price Discrimination," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 22, Edward Elgar Publishing.
    19. Leonard J. Mirman & Egas M. Salgueiro & Marc Santugini, 2013. "Integrating Real and Financial Decisions of the Firm," Cahiers de recherche 1333, CIRPEE.
    20. McCarthy, Ian M., 2016. "Advertising intensity and welfare in an equilibrium search model," Economics Letters, Elsevier, vol. 141(C), pages 20-26.
    21. Kuosmanen, Natalia & Valmari, Nelli, 2023. "Renewal of Companies Through Product Switching," ETLA Working Papers 104, The Research Institute of the Finnish Economy.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:igtrxx:v:13:y:2011:i:02:n:s0219198911002903. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/igtr/igtr.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.