Höffler, Felix (2007): On the consistent use of linear demand systems if not all varieties are available.
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Linear demand formulations for price competition in horizontally differentiated products are sometimes used to compare situations where additional varieties become available, e. g. due to market entry of new firms. We derive a consistent demand system to analyze such situations.
|Item Type:||MPRA Paper|
|Original Title:||On the consistent use of linear demand systems if not all varieties are available|
|Keywords:||Horizontal product differentiation, preferences for variety, market entry|
|Subjects:||D - Microeconomics > D1 - Household Behavior and Family Economics
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance
|Date Deposited:||20. Dec 2007 11:39|
|Last Modified:||12. Feb 2013 02:29|