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- Aggregation In A Model Of Price Competition

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  • Martin Peitz

    (Universidad de Alicante)

Abstract

In a model of price competition single-product ¯rms compete for consumers. Consumerspurchase a variable quantity of one of the di®erentiated goods. The paper provides results onequilibrium existence when consumers are heterogeneous in their evaluation of the di®erentiatedgoods among each other, their evaluation of the di®erentiated goods relative to the outside good,and heterogeneous in income. Furthermore, I provide su±cient conditions for dominance solvabilityand monotone comparative statics.

Suggested Citation

  • Martin Peitz, 1999. "- Aggregation In A Model Of Price Competition," Working Papers. Serie AD 1999-26, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:1999-26
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    References listed on IDEAS

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    Cited by:

    1. Alexandrov, Alexei & Bedre-Defolie, Özlem, 2017. "LeChatelier–Samuelson principle in games and pass-through of shocks," Journal of Economic Theory, Elsevier, vol. 168(C), pages 44-54.
    2. Rabah Amir, 2005. "Supermodularity and Complementarity in Economics: An Elementary Survey," Southern Economic Journal, John Wiley & Sons, vol. 71(3), pages 636-660, January.
    3. Sándor, Z., 2004. "On price equilibrium with multi-product firms," Econometric Institute Research Papers EI 2004-50, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    4. Margaret Aksoy-Pierson & Gad Allon & Awi Federgruen, 2013. "Price Competition Under Mixed Multinomial Logit Demand Functions," Management Science, INFORMS, vol. 59(8), pages 1817-1835, August.
    5. Alexander Konovalov & Zsolt Sándor, 2010. "On price equilibrium with multi-product firms," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 44(2), pages 271-292, August.

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