Nonlinear pricing and competition intensity in a Hotelling-type model with discrete product and consumer types

This paper develops a Hotelling model with discrete product and consumer types. We analyze the impact of horizontal differentiation (competition intensity) on relative prices. We find that the optimal price ratio of high- to low-quality products decreases with less competition.

Bibliographic Details
Main Author: Hernandez, Manuel A.
Format: Journal Article
Language:Inglés
Published: Elsevier 2011
Subjects:
Online Access:https://hdl.handle.net/10568/154720

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