Arbeitspapier

Bidimensional quality competition and scope economies

In markets where product quality is important, more than one characteristic is usually necessary to define product quality and the amelioration of the goods characteristics is usually costly. Then, properties of production technologies, in particular if they exhibit economies or diseconomies of scope in producing quality along several dimensions, should matter for the industry configuration at equilibrium. To date, however, the literature has neglected the issue. We analyze a duopoly model where two characteristics can be used to vertically differentiate the products. Our results are that the existence of economies of scope (resp. diseconomies of scope) leads to the emergence of a quality leader in all dimensions (resp. to a different quality leader in each characteristic).

Language
Englisch

Bibliographic citation
Series: Quaderni - Working Paper DSE ; No. 653

Classification
Wirtschaft
Subject
Produktqualität
Produktdifferenzierung
Marktführer
Verbundvorteil
Theorie

Event
Geistige Schöpfung
(who)
Garella, Paolo G.
Lambertini, Luca
Event
Veröffentlichung
(who)
Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
(where)
Bologna
(when)
2008

DOI
doi:10.6092/unibo/amsacta/4593
Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Garella, Paolo G.
  • Lambertini, Luca
  • Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)

Time of origin

  • 2008

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