It is well established in vertical product differentiation models that the high--quality firm reaps a larger profit in a two--stage quality--price game as long as the cost of quality improvement is zero or is borne as fixed cost in the first stage quality choice. This note shows that the...

type="main" <title type="main">ABSTRACT</title> <p>We consider a game of endogenous timing with observable delay in a mixed duopoly with endogenous vertical differentiation in the context of sequential quality and price choice. We find that a simultaneous play in the first opportunity at each stage turns out to be the unique...</p>