ABCD No .
نویسندگان
چکیده
We characterize the product line choice and pricing of a monopolist as the upper envelope of net marginal revenue curves to the individual product demand functions. The equilibrium product varieties to include in a product line are those yielding the highest upper envelope. In a central case (corresponding to a generalized vertical differentiation framework), the equilibrium range of varieties is exactly the same as the first‐best socially optimal range. These upper envelope and first‐best optimal range findings extend to a symmetric Cournot oligopoly as well. JEL Classification: L12, L13 and L15
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