Equilibrium with Product Differentiation

Evolution of Competitive Equilibrium with Endogenous Product Differentiation

Previous theoretical researches show that learning from good performers yields intense competition and results in the low profitability of firms. These researchers do not take into account differentiation strategies being referred as a useful strategic tool to mitigate competition. We introduce an evolutionary (learning) game into a duopoly model with product differentiation on the Hotelling li...

Technology of upstream firms and equilibrium product differentiation∗

Using a Hotelling-type product differentiation model (linear city model), we investigate the location strategies of upstream and downstream firms. We show that when transport costs of upstream firms are large, higher transport costs decrease the level of product differentiation of downstream firms. We also show that more inefficient transport technologies of upstream firms may enhance welfare. ...

Discussion Paper No. 776 EVOLUTION OF COMPETITIVE EQUILIBRIUM WITH ENDOGENOUS PRODUCT DIFFERENTIATION

Previous theoretical researches show that learning from good performers yields intense competition and results in the low profitability of firms. These researchers do not take into account differentiation strategies being referred as a useful strategic tool to mitigate competition. We introduce an evolutionary (learning) game into a duopoly model with product differentiation on the Hotelling li...

Competing in Markets with Digital Convergence: Product Differentiation, Platform Scope and Equilibrium Structure

The incorporation of digital technologies into the products of diverse industries, accompanied by a shift to von-Neumann-like platform architectures, while resulting in substantially more valuable and flexible products, also leads to increased substitutability across previously distinct markets. This paper analyzes the economic implications of this trade-off in technology markets subject to dig...

Product Differentiation