Article ID Journal Published Year Pages File Type
5054352 Economic Modelling 2014 4 Pages PDF
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
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