A Comment on a Model of Vertical Product Differentiation

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http://www.jstor.org/stable/info/2950513
Authors: 
Chong Ju Choi and Hyun Song Shin

In a duopoly model with vertical differentiation, if the firms do not cover the market, the lower quality firm chooses a quality level exactly 4/7 of that of the higher quality firm, and chooses a price which is 2/7 of the price of the higher quality firm.

Pages: 
229-231
Times downloaded: 
3
Related issue: 
Issue 2
Related volume: 
Volume 40

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© 2013 The journal of Industrial Economics, Ltd.