Munich Personal RePEc Archive

Core Existence in Vertically Differentiated Markets

Gabszewicz, Jean and Marini, Marco A. and Tarola, Ornella (2016): Core Existence in Vertically Differentiated Markets. Published in: Economics Letters , Vol. 149, : pp. 28-32.

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Abstract

We prove that a sufficient condition for the core existence in a n-firm vertically differentiated market is that the qualities of firms' products are equispaced along the quality spectrum. This result contributes to see that a fully collusive agreement among firms in such markets is more easily reachable when product qualities are not distributed too asymmetrically along the quality ladder.

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