R&D Decisions when Quality and Variety Interact

Hans Degryse and Andreas Irmen

Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie

Abstract: Often a quality improvement necessitates modifications of varietal product features. This paper studies firms' incentives to invest in quality improving R&D when this decision affects the goods' degree of varietal differention.

Keywords: R&D; quality standards; multi-dimentional product differentiation (search for similar items in EconPapers)
JEL-codes: D21 L15 (search for similar items in EconPapers)
Pages: 29 pages
Date: 1996-06
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Persistent link: https://EconPapers.repec.org/RePEc:lau:crdeep:9614

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