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On the consistent use of linear demand systems if not all varieties are available


  • Höffler, Felix


Linear demand formulations for price competition in horizontally differentiated products are sometimes used to compare situations where additional varieties become available, e. g. due to market entry of new firms. We derive a consistent demand system to analyze such situations.

Suggested Citation

  • Höffler, Felix, 2007. "On the consistent use of linear demand systems if not all varieties are available," MPRA Paper 6405, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:6405

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    More about this item


    Horizontal product differentiation; preferences for variety; market entry;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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