Uncertain quality, product varietyand price competition

This paper analyses price competition under product differentiation when goods are defined ina two dimensional characteristic space, and consumers do not know which firm sells whichquality. Equilibrium prices consist of two additive terms, which balance consumers' relativevaluation of goods' expected quality and consumers' preferences for variety. However therelative importance of these terms differ under vertical and horizontal dominance....

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Authors:	Gabszewicz, Jean Jaskold ; Resende, Joana
Institutions:	Center for Operations Research and Econometrics <Louvain-la-Neuve>
Subject:	Produktdifferenzierung \| Preiswettbewerb \| search costs

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Extent:	27 p. 465,82 p. application/pdf
Series:	Center for Operations Research and Econometrics - Discussion Papers 2008 CORE DISCUSSION PAPER ; No. 36 (2008)
Type of publication:	Book / Working Paper
Language:	English
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; D80 - Information and Uncertainty. General ; L15 - Information and Product Quality; Standardization and Compatibility ; Qualitity management ; Product policy ; Individual Working Papers, Preprints ; No country specification
Source:	USB Cologne (business full texts)

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