Cheng, Yi-Ling; Peng, Shin-Kun - In: Journal of Economics 112 (2014) 3, pp. 207-223
This paper examines a two-stage competition where firms simultaneously choose the number of products and qualities in the first stage, and then compete in prices. It is shown that a monopolist must sell a single product. In addition, in any equilibrium of multiproduct duopoly, there are...