Munich Personal RePEc Archive

On the consistent use of linear demand systems if not all varieties are available

Höffler, Felix (2007): On the consistent use of linear demand systems if not all varieties are available.

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Abstract

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.

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