A Comment on a Model of Vertical Product Differentiation

Chong Ju Choi and Hyun Song Shin

Journal of Industrial Economics, 1992, vol. 40, issue 2, 229-31

Abstract: In a duopoly model with vertical differentiation, if the firms do not cover the market, the lower-quality firm chooses a quality level exactly 4/7 of that of the higher-quality firm and chooses a price that is 2/7 of the price of the higher-quality firm. Copyright 1992 by Blackwell Publishing Ltd.

Date: 1992
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