Hend, Ghazzai; Rim, Lahmandi-Ayed - In: The B.E. Journal of Theoretical Economics 9 (2009) 1, pp. 1-23
This paper considers a vertical differentiation model with positive network effects. It is based on the assumption that consumers belong to the same network if they buy products exhibiting close characteristics. Thus, the network has two characteristics: its intensity and its selectivity. The...