Multiproduct Duopolists

Paul Champsaur and Jean Rochet

Econometrica, 1989, vol. 57, issue 3, 533-57

Abstract: The authors study a differentiated industry in which two firms compete by offering intervals of qualities to heterogenous consumers. They establish conditions which, for perfect competition and monopoly, imply that different consumers choose different qualities. Under these conditions, they show existence and essential uniqueness of a price equilibrium. At all price equilibria in which both firms make a positive profit, discrimination of consumers is incomplete. The authors also discuss the choice of product lines, and show that the Chamberlinian incentive to differentiate its products from those of its competitor dominates for intermediate qualities. Copyright 1989 by The Econometric Society.

Date: 1989
References: Add references at CitEc
Citations: View citations in EconPapers (150)

Downloads: (external link)
http://links.jstor.org/sici?sici=0012-9682%2819890 ... O%3B2-4&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: Multiproduct duopolists (1989)
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:ecm:emetrp:v:57:y:1989:i:3:p:533-57

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Guido Imbens

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().