Eaton, Jonathan; Kierzkowski, Henryk - In: RAND Journal of Economics 15 (1984) 1, pp. 99-107
This article develops a model of industrial structure and product variety when tastes are diffuse and when a firm must incur a fixed cost and design a product before producing. Pricing and output decisions occur subsequently. While standard Cournot-Nash and Bertrand-Nash equilibrium concepts...