In markets where product quality is important, more than one characteristic is usually necessary to define product quality and the amelioration of the goods characteristics is usually costly. Then, properties of production technologies, in particular if they exhibit economies or diseconomies of...

In markets where product quality is important, more than one characteristic is usually necessary to de fine product quality. Standard models maintain that: (i) in a duopoly there will be a quality leader no matter whether the product can incorporate one or two vertical attributes; (ii)...