Product differentiation and competitive selection

www.econstor.eu Product Differentiation and Competitive Selection

By studying the effect of different patterns of demand in an evolutionary selection model this paper shows how product differentiation reduces competitive selection pressure and thus increases the chances for the coexistence of firms. With the example of a duopoly it shows that: (1) a monopoly is the likely outcome of competition in homogeneous products, (2) although product differentiation doe...

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...

On the Anti-Competitive and Welfare Effects of Cross-Holdings with Product Differentiation

The anti-competitive effects of cross-holdings have been extensively analyzed in the literature. While the literature has generally focused on cases with homogenous products, this paper is the first attempt to analyze welfare as well as the anti-competitive effects of cross-holdings allowing for product differentiation. We show that the known results established with homogenous products continu...

Copyright and Product Differentiation

Product Differentiation