Chen, Yongmin; Riordan, Michael H. - In: The Rand journal of economics 39 (2008) 4, pp. 1042-1058
In a discrete choice model of product differentiation, the symmetric duopoly price may be lower than, equal to, or higher than the single-product monopoly price. While the market share effect of competition encourages a firm to charge less than the monopoly price because a duopolist serves fewer...