Article ID Journal Published Year Pages File Type
5061191 Economics Letters 2010 4 Pages PDF
Abstract

We analyze the effects of the introduction of a unit production cost in a vertical differentiation model with fixed costs of quality improvement: For a low (high) unit cost, a rise in cost reduces (increases) product differentiation and prices.

Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
On production costs in vertical differentiation models
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