Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/330049 
Authors: 
Year of Publication: 
2023
Citation: 
[Journal:] Games [ISSN:] 2073-4336 [Volume:] 14 [Issue:] 4 [Article No.:] 56 [Year:] 2023 [Pages:] 1-11
Publisher: 
MDPI, Basel
Abstract: 
This research paper investigates a duopolistic market characterized by vertical product differentiation. The study considers both product qualities and consumer preferences represented as one-dimensional intervals. The focus is on analyzing the equilibrium in a duopoly game with convex production costs. In this setting, each firm has the option to present a multi-product strategy consisting of quality-price pairs, and their profits are determined by the decisions made by consumers. The findings of the study reveal that, under typical consumer preference conditions, both firms tend to offer a single quality-price pair. Additionally, the market is shown to be fully served, and firm profits decrease as the index of product quality increases. A comparative analysis is also conducted with the case of a monopoly.
Subjects: 
duopoly
single product quality strategy
fully served market
JEL: 
C72
D43
L15
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
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