We define a two-variant model of product differentiation which, depending on the number of consumersprefering one variant to the other, provides equilibrium prices reflecting the natural valuation of thesevariants by the market....

In this paper, we propose an example of successive oligopolies where the downstream firmsshare the same decreasing returns technology of the Cobb-Douglas type. We stress thedifferences between the conclusions obtained under this assumption and those resultingfrom the traditional example...

This paper analyses price competition under product differentiation when goods are defined ina two dimensional characteristic space, and consumers do not know which firm sells whichquality. Equilibrium prices consist of two additive terms, which balance consumers' relativevaluation of goods'...

In this paper we analyze how the technology used by downstream firms can influence inputand output market prices. We show via an example that both these prices increase under adecreasing returns technology while the contrary holds when the technology is constant....