Product differentiation and equilibrium price with partial product search

Lin Liu and X. Wang ()

Economics Letters, 2021, vol. 205, issue C

Abstract: Anderson and Renault (1999) show a U-shaped relationship between firms’ equilibrium prices and product differentiation. Through a simultaneous search model with partial depth, we show that such a U-shaped relationship emerges (vanishes) when search depth is fixed (chosen by consumers).

Keywords: Search; Partial-search depth; Price; Product differentiation; Competition (search for similar items in EconPapers)
JEL-codes: D43 D83 L13 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:205:y:2021:i:c:s0165176521002093

DOI: 10.1016/j.econlet.2021.109932

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