Article ID Journal Published Year Pages File Type
984578 Research in Economics 2012 18 Pages PDF
Abstract
► We model transport cost reduction in a vertically differentiated duopoly. ► We assume that the ex-ante transport costs are higher for the high quality firm. ► Relative ex-ante accessibility and quality differences drive the results. ► The high quality firm may gain lower profits in equilibrium.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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