Endogenous Choice Between Horizontal and Vertical Product Differentiation

Luca Lambertini ()

Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna

Abstract: The endogenous choice between two alternative kinds of product differentiation is addressed in a duopoly model where firms are free to locate along the real axis, while consumers are distributed along a linear city of finite length. It turns out that the nature of differentiation may be heavily affected by the sequence of decisions. If firms simultaneously choose first locations and then prices, product differentiation at equilibrium is horizontal. If instead one firm acts as a Stackelberg leader in both stages, product differentiation at equilibrium is vertical.

JEL-codes: L13 (search for similar items in EconPapers)
Date: 1993-08
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://amsacta.unibo.it/5186/1/171.pdf (application/pdf)

Related works:
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: https://EconPapers.repec.org/RePEc:bol:bodewp:171

Access Statistics for this paper

More papers in Working Papers from Dipartimento Scienze Economiche, Universita' di Bologna Contact information at EDIRC.
Bibliographic data for series maintained by Dipartimento Scienze Economiche, Universita' di Bologna ().