Price competition and quality differentiation with multiproduct firms

被引：0
作者：
Yi-Ling Cheng
Shin-Kun Peng
机构：
[1] Tunghai University,
[2] Academia Sinica and National Taiwan University,undefined
来源：
Journal of Economics | 2014年 / 112卷
关键词：
Multiproduct firms; Vertical product differentiation ; Quality differentiation; Quality competition; Bertrand competition; D43; L11; L13;
D O I：
暂无
中图分类号：
学科分类号：
摘要：
This paper examines a two-stage competition where firms simultaneously choose the number of products and qualities in the first stage, and then compete in prices. It is shown that a monopolist must sell a single product. In addition, in any equilibrium of multiproduct duopoly, there are segmented patterns of quality differentiation. Entangled configurations never emerge because each firm has an incentive to reduce the number of products facing direct competition with its rival. This result contrasts sharply with the equilibrium of non-segmented quality differentiation when firms compete in quantities. Furthermore, we find that the high-quality firm never offers more products than the low-quality firm, and quality differentiation between firms is greater than that within a firm.
引用
收藏
页码：207 / 223
页数：16
相关论文
共 21 条
  • [1] Bonnisseau JM(2006)Vertical differentiation: multiproduct strategy to face entry? Berkeley Electron J Theor Econ 6 1-14
  • [2] Lahmandi-Ayed R(1989)Multiproduct duopolists Econometrica 57 533-557
  • [3] Champsaur P(2012)Quality and quantity competition in multiproduct duopoly South Econ J 79 180-202
  • [4] Rochet JC(2012)Price and quality competition J Econ 107 23-44
  • [5] Cheng Y-L(1992)A comment on a model of vertical product differentiation J Ind Econ 40 229-231
  • [6] Peng S-K(1995)Duopoly and quality standards Eur Econ Rev 39 71-82
  • [7] Chioveanu I(1993)Product line rivalry with brand differentiation J Ind Econ 41 223-240
  • [8] Choi JC(2012)Relaxing competition through quality differentiation and price discrimination J Econ 106 1-26
  • [9] Shin HS(1984)Firm specific differentiation and competition among multiproduct firms J Bus 57 S149-166
  • [10] Crampes C(2007)On the social desirability of patents for sequential innovations in a vertically differentiated market J Econ 90 193-214
123