Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
984578 | Research in Economics | 2012 | 18 Pages |
Abstract
⺠We model transport cost reduction in a vertically differentiated duopoly. ⺠We assume that the ex-ante transport costs are higher for the high quality firm. ⺠Relative ex-ante accessibility and quality differences drive the results. ⺠The high quality firm may gain lower profits in equilibrium.
Related Topics
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Economics and Econometrics
Authors
Emanuele Bacchiega, Emanuela Randon, Lorenzo Zirulia,