Hansen, Jørgen Drud; Nielsen, Jørgen Ulff-Møller - Nationalökonomisk Institut, Institut for Økonomi - 2008
This paper examines the relation between price differences and quality differences in an oligopoly model with intra-industry trade, where goods are horizontally as well as vertically differentiated. The analysis demonstrates that the ratio of prices is not linked to the ratio of qualities in any...