Quality Choice in Models of Vertical Differentiation

Xavier Wauthy

Journal of Industrial Economics, 1996, vol. 44, issue 3, 345-53

Abstract: In this note, the author offers the complete characterization of quality choices in a duopoly model of vertical product differentiation where firms simultaneously choose the quality of the product and then compete in prices. He thereby gives precise content to the 'principle of differentiation' in models of vertical product differentiation, which completes and amends previous results on the subject. Copyright 1996 by Blackwell Publishing Ltd.

Date: 1996
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Working Paper: Quality Choice in Models of Vertical Differentiation (1994)
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