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Quality Choice in Models of Vertical Differentiation

Xavier Wauthy

No 1994033, Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: In this paper, we consider a duopoly model of vertical product differentiation. Firms choose simultanously the quality of the product they sell and then compete in prices simultaneously. We offer the complete characterization of quality choices for this model and thereby give a precise content to the " principle of differentiation " in models of vertical product differentiation.

Pages: 10
Date: 1994-10-01
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