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model this limited attention to quality differences with a perception threshold: Consumers only perceive quality differences … between goods that exceed the consumers' perception threshold. The model allows for two types of equilibria: equilibria with …
Persistent link: https://www.econbiz.de/10013370791
In this paper, we study the rational for an incumbent to launch a second brand when facing potential entry in a market with quality differentiated products and a fringe producer. Depending on market size, costs for a second brand and a potential entrant’s setup cost the incumbent might use a...
Persistent link: https://www.econbiz.de/10010433926
This paper investigates the competition between vertically differentiated platforms in two-sided markets. We assume the …
Persistent link: https://www.econbiz.de/10012904109
In this paper, under the assumption that green consumption has (at least partially) a social/psychological dimension, we analyse the effect of a carbon tax when it is imposed on consumers buying dirty products rather than on polluting firms. The amount of the tax paid is determined by the share...
Persistent link: https://www.econbiz.de/10011674378
This paper shows the conditions for consumer sorting to be profitable. Sorting of low quality goods dampens their substitutability with high quality goods and can raise firm's profit even when sorting lowers profit from low quality sales considered alone
Persistent link: https://www.econbiz.de/10014193836
We study subgame-perfect equilibria of the classical quality-price, multistage game of vertical product differentiation. Each firm can choose the levels of an arbitrary number of qualities. Consumers' valuations are drawn from independent and general distributions. The unit cost of production is...
Persistent link: https://www.econbiz.de/10011703411
Consumers are assumed to be unable to discriminate between two goods of differing qualities provided that the qualities are close enough. It is shown that in a vertically differentiated duopoly this results in multiple equilibria. Demand for each firm's good is reduced. Firms' profits may be...
Persistent link: https://www.econbiz.de/10013056464
context, open source software enables firms to avoid quality competition as they can cooperate on quality without an explicit … model that combines aspects of non-cooperative R&D with the theory of differentiated oligopolies: In stage one, firms …
Persistent link: https://www.econbiz.de/10003971543
findings are robust to several variations, including price and salience competition as well as varying quality of the available …
Persistent link: https://www.econbiz.de/10011508048
mover advantage and quality differentiation in the sequential quality competition. -- Market share maximiziation ; Vertical …
Persistent link: https://www.econbiz.de/10008757547