Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159494
Authors: 
Garella, Paolo G.
Lambertini, Luca
Year of Publication: 
2008
Series/Report no.: 
Quaderni - Working Paper DSE 653
Abstract: 
In markets where product quality is important, more than one characteristic is usually necessary to define product quality and the amelioration of the goods characteristics is usually costly. Then, properties of production technologies, in particular if they exhibit economies or diseconomies of scope in producing quality along several dimensions, should matter for the industry configuration at equilibrium. To date, however, the literature has neglected the issue. We analyze a duopoly model where two characteristics can be used to vertically differentiate the products. Our results are that the existence of economies of scope (resp. diseconomies of scope) leads to the emergence of a quality leader in all dimensions (resp. to a different quality leader in each characteristic).
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

Files in This Item:
File
Size
170.97 kB





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