Core Existence in Vertically Differentiated Markets

We prove that a sufficient condition for the core existence in a n-firm vertically differentiated market is that the qualities of firms' products are equispaced along the quality spectrum. This result contributes to see that a fully collusive agreement among firms in such markets is more easily reachable when product qualities are not distributed too asymmetrically along the quality ladder.

MoreLess

Year of publication:	2016-12-10
Authors:	Gabszewicz, Jean ; Marini, Marco A. ; Tarola, Ornella

More details

Type of publication:	Book / Working Paper
Language:	English
Notes:	Gabszewicz, Jean and Marini, Marco A. and Tarola, Ornella (2016): Core Existence in Vertically Differentiated Markets. Published in: Economics Letters , Vol. 149, : pp. 28-32.
Classification:	C7 - Game Theory and Bargaining Theory ; C71 - Cooperative Games ; D21 - Firm Behavior ; D4 - Market Structure and Pricing ; L1 - Market Structure, Firm Strategy, and Market Performance ; L13 - Oligopoly and Other Imperfect Markets
Source:	BASE

Persistent link: https://www.econbiz.de/10015256939