Horizontal differentiation is generally derived from the aggregate utility function and is assumed to be symmetric …. However, empirical work suggests that asymmetric horizontal differentiation can exist in practice. This paper examines the … topic of asymmetric horizontal differentiation by allowing a firm's costly advertising to have a different impact on its own …

-integration. Horizontal integration of IP holders solves the complements problem but not the double mark-up problem. Vertical integration … discourages entry and reduces innovation incentives, while horizontal integration always benefits from entry and innovation …