On production costs in vertical differentiation models

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Brécard, Dorothée;
  • Publisher: HAL CCSD
  • Subject: [SHS.GESTION]Humanities and Social Sciences/Business administration | [SHS.ECO]Humanities and Social Sciences/Economies and finances | [SHS.ECO]Humanities and Social Sciences/Economics and Finance

In this paper, we analyse the effects of the introduction of a unit production cost beside a fixed cost of quality improvement in a duopoly model of vertical product differentiation. Thanks to an original methodology, we show that a low unit cost tends to reduce product... View more
  • References (6)

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    A2. Simulations results for " = 1 and f = 1.

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