Please use this identifier to cite or link to this item:
Lambertini, Luca
Year of Publication: 
Series/Report no.: 
Quaderni - Working Paper DSE No. 171
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.
Persistent Identifier of the first edition: 
Creative Commons License:
Document Type: 
Working Paper

Files in This Item:
177.61 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.