Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/313094 
Year of Publication: 
2025
Series/Report no.: 
Working Paper No. 461
Publisher: 
University of Zurich, Department of Economics, Zurich
Abstract: 
This paper provides a simple unified discrete-choice framework for analyzing differentiated duopolies. This framework nests models of horizontal and vertical differentiation, including standard textbook models (Hotelling and Shaked-Sutton). Contrary to these models, it also applies to economic environments where horizontal differentiation coincides with positive correlation of product valuations across consumers, and environments where vertical differentiation coincides with negative correlation. The paper provides an equilibrium characterization that is applicable independently of the type of differentiation and the sign of the valuation correlation.
Subjects: 
Duopoly
Differentiated Products
Price Competition
JEL: 
D43
L13
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size





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