Market configurations when marginal costs are quality-dependent

Cesaltina Pacheco Pires, Sílvia Ferreira Jorge, Margarida Catalão-Lopes*, Joana Pinho, Pedro Garcês, Adriana Alventosa

*Autor correspondente para este trabalho

Resultado de pesquisarevisão de pares

14 Transferências (Pure)

Resumo

Most quality-then-price decision models under vertical product differentiation consider a predetermined market configuration. We endogenize market configuration considering quality-dependent marginal costs and conclude that a strictly interior full coverage duopoly holds for some parameter values, unveiling the relevance of this commonly assumed market structure. Moreover, we show that a monopoly never arises in equilibrium, and (i) there are multiple equilibria at the frontier between interior and corner full coverage duopoly, (ii) the market is fully (partially) covered when relative tastes' heterogeneity is low (high), and (iii) there is a discontinuity in the transition from partial coverage to full coverage duopoly.
Idioma originalEnglish
Páginas (de-até)3972-3992
Número de páginas21
RevistaManagerial and Decision Economics
Volume45
Número de emissão6
DOIs
Estado da publicaçãoPublicado - set. 2024

Impressão digital

Mergulhe nos tópicos de investigação de “Market configurations when marginal costs are quality-dependent“. Em conjunto formam uma impressão digital única.

Citação