Beyond the Uniform Distribution: Equilibrium Prices and Qualities in a Vertically Differentiated Duopoly

Arbeitspapier

The paper proves the existence of a subgame perfect Nash equilibrium in a vertically differentiated duopoly with uncovered market, for a large set of symmetric and asymmetric distributions of consumers, including, among others, all logconcave distributions. The proof relies on the 'income share elasticity' representation of the consumers' density function, which ensures the analytical tractability of the firms' optimality conditions at a high level of generality. Some illustrative examples of the solution are offered, in order to assess the impact of distributive shocks on the equilibrium market configuration.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Quaderni - Working Paper DSE ; No. 1044

Classification and Topics

• Classification: Wirtschaft ; Oligopoly and Other Imperfect Markets ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Noncooperative Games

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Benassi, Corrado ; Chirco, Alessandra ; Colombo, Caterina
• Event: Veröffentlichung
• (who): Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
• (where): Bologna
• (when): 2015

Further information

• DOI: doi:10.6092/unibo/amsacta/4424
• Handle: http://hdl.handle.net/10419/159882
• Last update: 10.03.2025, 11:43 AM CET