Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/128810
Authors: 
Kaniovski, Serguei
Year of Publication: 
2005
Series/Report no.: 
WIFO Working Papers 252
Abstract: 
By studying the effect of different patterns of demand in an evolutionary selection model this paper shows how product differentiation reduces competitive selection pressure and thus increases the chances for the coexistence of firms. With the example of a duopoly it shows that: (1) a monopoly is the likely outcome of competition in homogeneous products, (2) although product differentiation does not preclude a monopoly it greatly improves the chances for the stable coexistence of firms in the long run, and (3) the more differentiated the products, the more stable the duopoly.
Subjects: 
product differentiation
selection
market niche
JEL: 
B52
L11
Document Type: 
Working Paper

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