Price equilibrium in address models of product differentiation: unit-elastic demand

I present a class of address models of product differentiation with unit-elastic individual demand and show the existence of Nash equilibrium in prices under assumptions on utility functions and the taste and income heterogeneity across consumers. This paper complements the work by Caplin and Nalebuff (1991, Econometrica), who analyze unit demand models of product differentiation.

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Year of publication:	2002-03-21
Authors:	Peitz, Martin
Published in:	Economic Theory. - Springer. - Vol. 20.2002, 4, p. 849-860
Publisher:	Springer
Subject:	Imperfect competition \| Characteristics approach \| Price competition \| Income heterogeneity \| Variable individual demand

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Extent:	application/pdf
Type of publication:	Article
Notes:	Received: December 28, 1998; revised version: September 5, 2001
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005370867