Arbeitspapier
Process and product innovation in a vertically differentiated industry
We examine a vertically differentiated duopoly where firms invest in process and product innovation and then compete in prices under full market coverage. We show that (i) process and product innovation are complements (substitutes) for the low-quality (high-quality) firm; (ii) the firm which is initially more efficient invests more than the rival in process innovation; (iii) if the initial differential between marginal costs is sufficiently high, the demand for the less efficient firm is nil and the duopoly equilibrium does not exist.
- Language
-
Englisch
- Bibliographic citation
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Series: Quaderni - Working Paper DSE ; No. 583
- Classification
-
Wirtschaft
- Event
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Geistige Schöpfung
- (who)
-
Bacchiega, Emanuele
Lambertini, Luca
Mantovani, Andrea
- Event
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Veröffentlichung
- (who)
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Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
- (where)
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Bologna
- (when)
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2007
- DOI
-
doi:10.6092/unibo/amsacta/4701
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bacchiega, Emanuele
- Lambertini, Luca
- Mantovani, Andrea
- Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
Time of origin
- 2007
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On the Social Desirability of Patents for Sequential Innovations in a Vertically Differentiated Market
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Choosing Roles in a Duopoly for Endogenously Differentiated Products
Delegation and Product Differentiation
Process and Product Innovation in a Vertically Differentiated Monopoly
Endogenous timing and the choice of quality in a vertically differentiated duopoly
Sequential Entry in a Vertically Differentiated Duopoly
On the Regulation of A Vertically Differentiated Market Through Taxation/Subsidization of Product Quality
Low-Quality Leadership in a Vertically Differentiated Duopoly with Cournot Competition
The Dynamics of Disease in a Regulated Vertically Differentiated Health System
Market Coverage and the Existence of Equilibrium in a Vertically Differentiated Duopoly
On the Social Desirability of Patents for Sequential Innovations in a Vertically Differentiated Market
Growth in a Differentiated Oligopoly with Product Innovation
Sequential Vs Simultaneous Equilibria in A Differentiated Duopoly
Choosing Roles in a Duopoly for Endogenously Differentiated Products
Delegation and Product Differentiation
Process and Product Innovation in a Vertically Differentiated Monopoly
Endogenous timing and the choice of quality in a vertically differentiated duopoly
Sequential Entry in a Vertically Differentiated Duopoly
On the Regulation of A Vertically Differentiated Market Through Taxation/Subsidization of Product Quality
Low-Quality Leadership in a Vertically Differentiated Duopoly with Cournot Competition
The Dynamics of Disease in a Regulated Vertically Differentiated Health System
Market Coverage and the Existence of Equilibrium in a Vertically Differentiated Duopoly
On the Social Desirability of Patents for Sequential Innovations in a Vertically Differentiated Market
Growth in a Differentiated Oligopoly with Product Innovation
Sequential Vs Simultaneous Equilibria in A Differentiated Duopoly
Choosing Roles in a Duopoly for Endogenously Differentiated Products