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Pré-Publication, Document De Travail Année : 2009

On production costs in vertical differentiation models

Résumé

In this paper, we analyse the effects of the introduction of a unit production cost beside a fixed cost of quality improvement in a duopoly model of vertical product differentiation. Thanks to an original methodology, we show that a low unit cost tends to reduce product differentiation and thus prices, whereas a high unit cost leads to widen product differentiation and to increase prices
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Dates et versions

hal-00421171 , version 1 (01-10-2009)

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  • HAL Id : hal-00421171 , version 1

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Dorothée Brécard. On production costs in vertical differentiation models. 2009. ⟨hal-00421171⟩
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