Nonlinear pricing and competition intensity in a Hotelling-type model with discrete product and consumer types

Manuel Hernandez

Economics Letters, 2011, vol. 110, issue 3, 174-177

Abstract: This paper develops a Hotelling model with discrete product and consumer types. We analyze the impact of horizontal differentiation (competition intensity) on relative prices. We find that the optimal price ratio of high- to low-quality products decreases with less competition.

Keywords: Nonlinear; pricing; Product; differentiation; Competition; intensity; Discrete; model (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:110:y:2011:i:3:p:174-177

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