Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159014
Authors: 
Lambertini, Luca
Year of Publication: 
1993
Series/Report no.: 
Quaderni - Working Paper DSE 171
Abstract: 
The endogenous choice between two alternative kinds of product differentiation is addressed in a duopoly model where firms are free to locate along the real axis, while consumers are distributed along a linear city of finite length. It turns out that the nature of differentiation may be heavily affected by the sequence of decisions. If firms simultaneously choose first locations and then prices, product differentiation at equilibrium is horizontal. If instead one firm acts as a Stackelberg leader in both stages, product differentiation at equilibrium is vertical.
JEL: 
L13
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

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