This paper endogeneizes the level of market coverage in a vertically differentiated market where firms decide first their qualities and next their prices. We extend the few endogeneization results to a more realistic setup, with quality dependent unit production costs. We show that, depending on...

This paper explores in detail a price game with two potential competitors who sell products with different qualities and where unit production costs are increasing with quality. Depending on the quality combinations, many types of price equilibria configurations may exist, besides the classical...