In the classical literature on vertical differentiation, goods are assumed to be single products each offered by a different firm and consumed separately one from another. This paper departs from the standard setup and explores the price competition in a vertically differentiated market where a...

In this paper we study how an exogenous expense of owning a market good affects the equilibrium outcome in a market with vertical product differentiation i.e. consumers differ by income but have identical preferences for the good's quality. We identify three possible subgame-perfect equilibrium...

In this paper we study how an exogenous expense of owning a market good affects the equilibrium outcome in a market with vertical product differentiation i.e. consumers differ by income but have identical preferences for the good’s quality. We identify three possible subgame-perfect...