Strategic product variety and quality choice

Lluís M. Granero

Economics Letters, 2019, vol. 182, issue C, 10-14

Abstract: We examine the linkages between strategic product assortment, quality choice, and pricing by multi-product firms as well as the welfare effects from those linkages. The analysis shows that strategic effects can lead to relevant inefficiencies. Specifically, the analysis identifies effects which can induce insufficient or excessive product quality relative to the socially optimal level of quality.

Keywords: Product variety; Quality; Multi-product oligopoly; Spatial models (search for similar items in EconPapers)
JEL-codes: D43 L12 L13 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:182:y:2019:i:c:p:10-14

DOI: 10.1016/j.econlet.2019.05.033

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