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Nonlinear pricing and competition intensity in a Hotelling-type model with discrete product and consumer types

This paper develops a Hotelling model with discrete product and consumer types. We analyze the impact of horizontal differentiation (competition intensity) on relative prices. We find that the optimal price ratio of high- to low-quality products decreases with less competition.
Year of publication:
2011
Authors: Hernandez, Manuel A.
Published in:
Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 110.2011, 3, p. 174-177
Publisher: Elsevier
Keywords: Nonlinear pricing Product differentiation Competition intensity Discrete model
Type of publication: Article
Source:
Persistent link: https://www.econbiz.de/10008866964
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