Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5054352 | Economic Modelling | 2014 | 4 Pages |
Abstract
This paper compares the equilibrium outcomes under simultaneous and sequential price settings in a vertically differentiated market. When the timing of the price game is determined endogenously, it is shown that the sequential play with the high quality firm leading emerges, yielding the highest industry profit but the lowest social welfare among the different timings.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Youping Li,