Amacher, Gregory S.; Koskela, Erkki; Ollikainen, Markku - 2003
duopoly equilibrium when convex costs of quality provision are either fixed or variable in terms of production. We show that … optimal under variable costs. In the duopoly equilibrium the quality spread is too wide under variable costs, but too narrow … provided by the duopoly equilibrium is too low from the perspective of a social welfare maximizer. …