Behrens, Christiaan; Lijesen, Mark - Tinbergen Instituut - 2012
We explore the characteristics of a capacity-then-price game for a duopoly market with product differentiation and … stochastic demand. The analysis shows that a minimum threshold value for the level of vertical product differentiation exists …, relative to horizontal product differentiation, for which existence of a Nash equilibrium in pure strategies is guaranteed. We …