Product and Price Competition in a Duopoly
Abstract
This paper examines the role of consumer preferences, costs, and price competition in determining the competitive product strategy of a firm. In the model studied here, there are two identical firms competing on product quality and price. They face consumers who prefer a higher quality product to a lower quality product, but differ in how much they are willing to pay for quality. The consumers can also choose a substitute if they don't like the...
Paper Details
Title
Product and Price Competition in a Duopoly
Published Date
May 1, 1988
Journal
Volume
7
Issue
2
Pages
141 - 168
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