Pure Component Pricing in a Duopoly

Chun‐Hsiung Liao and Amparo Urbano

Manchester School, 2002, vol. 70, issue 1, 150-163

Abstract: In this paper, we focus on price competition between several multiproduct firms which produce differentiated systems, each consisting of two complementary products. It is shown here that if firms are restricted to pure component pricing (bundling is not allowed) whenever components produced are compatible, pure strategy equilibrium may not exist. With the use of bundling strategies, pure strategy equilibrium always exists. For the pure component pricing case we provide a full characterization for the existence of a pure strategy equilibrium.

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.1111/1467-9957.00289

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:bla:manchs:v:70:y:2002:i:1:p:150-163

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1463-6786

Access Statistics for this article

Manchester School is currently edited by Keith Blackburn

More articles in Manchester School from University of Manchester Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().