We consider cannibalization in a duopoly model in which …rms with di¤erent costs supply two vertically di¤erentiated products in the same market. We …nd that an increase in the di¤erence in quality between the two goods or a decrease in the marginal cost of the high-quality goods leads to...

In this paper, we consider a duopoly model where two firms sell two differentiated products and there is a network externality between either carriers or machines. We derive the equilibria of these games and illustrate the effects of a change in quality on the equilibrium quantity of each good....

We consider cannibalization in a duopoly model in which firms with diffrent costs supply two vertically differentiated products in the same market. We find that an increase in the difference in quality between the two goods or a decrease in the marginal cost of the high-quality goods leads to...