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Choosing Roles in a Duopoly for Endogenously Differentiated Products

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  • L. Lambertini

Abstract

The choice of the roles by firms in a differentiated duopoly is analysed, under both the assumption of full and non full market coverage. Under the first, it turns out that, due to the endogeneity of product differentiation, both firms would prefer to be price leader, contrarily to the results obtained by previous literature. Under the latter, it is possible to analyse both price and quantity competition. The consequences in terms of social welfare are also outlined.

Suggested Citation

  • L. Lambertini, 1994. "Choosing Roles in a Duopoly for Endogenously Differentiated Products," Working Papers 191, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:191
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    Cited by:

    1. L. Lambertini, 1997. "Time Consistency in Games of Timing," Working Papers 302, Dipartimento Scienze Economiche, Universita' di Bologna.
    2. Yong-Hwan Noh & Giancarlo Moschini, 2006. "Vertical Product Differentiation, Entry-Deterrence Strategies, and Entry Qualities," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 29(3), pages 227-252, November.
    3. Li, Youping, 2014. "Price leadership in a vertically differentiated market," Economic Modelling, Elsevier, vol. 38(C), pages 67-70.
    4. Luciano Fanti & Luca Gori, 2024. "A product innovation game with managerial delegation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(2), pages 770-783, March.
    5. Leufkens, D., 2015. "Der Wert geschützter Herkunftsangaben in einer industrieökonomischen und hedonischen Preisanalyse," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 50, March.
    6. Desquilbet, Marion & Hassan, Daniel & Monier-Dilhan, Sylvette, 2006. "Are Geographical Indications a Worthy Quality Signal? A Framework on Protected Designation of Origin with Endogenous Quality Choice," 2006 Annual meeting, July 23-26, Long Beach, CA 21466, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Luca Lambertini & Piero Tedeschi, 2007. "Would You Like To Enter First With A Low‐Quality Good?," Bulletin of Economic Research, Wiley Blackwell, vol. 59(3), pages 269-282, July.
    8. Stefano Quarta & Skerdilajda Zanaj, 2018. "Health and Pollution in a Vertically Differentiated Duopoly," DEM Discussion Paper Series 18-20, Department of Economics at the University of Luxembourg.
    9. S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Multiproduct Firms, Product Differentiation, and Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
    10. Luca Lambertini & Raimondello Orsini, 2005. "The Existence Of Equilibrium In A Differentiated Duopoly With Network Externalities," The Japanese Economic Review, Japanese Economic Association, vol. 56(1), pages 55-66, March.
    11. Emanuele Bacchiega & Luca Lambertini & Andrea Mantovaini, 2011. "Process And Product Innovation In A Vertically Differentiated Industry," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 13(02), pages 209-221.
    12. Matt E. Thatcher & David E. Pingry, 2004. "An Economic Model of Product Quality and IT Value," Information Systems Research, INFORMS, vol. 15(3), pages 268-286, September.
    13. Leufkens, Daniel, 2014. "Der Wert Geschützter Herkunftsangaben In Einer Industrieökonomischen Und Hedonischen Preisanalyse," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187429, German Association of Agricultural Economists (GEWISOLA).
    14. Lin Liu & Yuanzhu Lu, 2014. "Endogenous Timing In A Mixed Duopoly With Endogenous Vertical Differentiation," Bulletin of Economic Research, Wiley Blackwell, vol. 66(3), pages 305-312, July.
    15. Gregory S. Amacher & Erkki Koskela & Markku Ollikainen, 2005. "Quality Competition and Social Welfare in Markets with Partial Coverage: New Results," Bulletin of Economic Research, Wiley Blackwell, vol. 57(4), pages 391-405, October.
    16. Rahmati, Mohammad Hossein & Yousefi, Seyed Reza, 2013. "Demand estimation for the Iranian automobile industry," The Quarterly Review of Economics and Finance, Elsevier, vol. 53(3), pages 277-284.
    17. Ludovic A. Julien & Olivier Musy, 2015. "A Review of Heinrich von Stackelberg's Book: ‘Market Structure and Equilibrium’," Australian Economic Papers, Wiley Blackwell, vol. 54(1), pages 52-60, March.
    18. Giulio ECCHIA & Luca LAMBERTINI, 2001. "Endogenous Timing and Quality Standards in a Vertically Differentiated Duopoly," Discussion Papers (REL - Recherches Economiques de Louvain) 2001021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    19. Jochen Manegold, 2016. "Stackelberg Competition among Intermediaries in a Differentiated Duopoly with Product Innovation," Working Papers CIE 98, Paderborn University, CIE Center for International Economics.
    20. G. Ecchia & L. Lambertini, 1997. "Full vs Partial Market Coverage with Minimum Quality Standards," Working Papers 285, Dipartimento Scienze Economiche, Universita' di Bologna.

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