We study a Cournot industry in which each firm sells multiple quality-differentiated products. We use an upgrades approach, working not with the actual products but instead with upgrades from one quality to the next. The properties of single-product models carry over to the supply of upgrades,...

We investigate mergers in markets where quality differences between products are central and firms may reposition their product lines by adding or removing products of different qualities following a merger. Such mergers are materially different from those studied in the existing literature....