Uncertainty quality, product variety and price competition

Jean Gabszewicz () and Joana Resende

No 2008027, Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques

Abstract: This paper analyses price competition under product differentiation when goods are defined in a two dimensional characteristic space, and consumers do not know which firm sells which quality. Equilibrium prices consist of two additive terms, which balance consumersÕ relative valuation of goodsÕ expected quality and consumersÕ preferences for variety. However the relative importance of these terms differ under vertical and horizontal dominance

Keywords: product differentiation; variety; quality; uncertainty (search for similar items in EconPapers)
JEL-codes: D43 D80 L15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com and nep-upt
Date: 2008-08-27

Downloads: (external link)
http://sites.uclouvain.be/econ/DP/IRES/2008-27.pdf (application/pdf)

Related works:
Working Paper: Uncertainty quality, product variety and price competition (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:ctl:louvec:2008027

Access Statistics for this paper

More papers in Discussion Papers (ECON - Département des Sciences Economiques) from Université catholique de Louvain, Département des Sciences Economiques
Address: Place Montesquieu 3, 1348 Louvain-la-Neuve (Belgium)
Contact information at EDIRC.
Series data maintained by Anne DAVISTER ().