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On the consistent use of linear demand systems if not all varieties are available

Felix Höffler

MPRA Paper from University Library of Munich, Germany

Abstract: Linear demand formulations for price competition in horizontally differentiated products are sometimes used to compare situations where additional varieties become available, e. g. due to market entry of new firms. We derive a consistent demand system to analyze such situations.

Keywords: Horizontal product differentiation; preferences for variety; market entry (search for similar items in EconPapers)
JEL-codes: D1 L1 (search for similar items in EconPapers)
Date: 2007-10-27
New Economics Papers: this item is included in nep-com and nep-mic
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