Endogenous Horizontal Product Differentiation in a Mixed Duopoly

2019 ◽  
Vol 56 (3) ◽  
pp. 435-462 ◽  
Author(s):  
Longhua Liu ◽  
X. Henry Wang ◽  
Chenhang Zeng
Keyword(s):  
Product Differentiation ◽  
Mixed Duopoly ◽  
Horizontal Product Differentiation

Environmental policy in a linear city model of product differentiation

2012 ◽  
Vol 17 (4) ◽  
pp. 461-477 ◽  
Author(s):  
Ana Espínola-Arredondo ◽  
Huan Zhao
Keyword(s):  
Environmental Policy ◽  
Environmental Regulation ◽  
Product Differentiation ◽  
Welfare Gains ◽  
Subsidy Policy ◽  
Tax Subsidy ◽  
Horizontal Product Differentiation ◽  
City Model ◽  
Polluting Firms ◽  
Linear City

AbstractThis paper analyzes how a tax/subsidy policy affects consumers' behavior when choosing between green (pollution-free goods) and conventional products, and its effects on welfare when a proportion of consumers have strong preferences for green goods. We analyze a Hotelling's linear city model where final products by two firms are symmetric in all dimensions except for the externality their production process generates. Our efficiency comparisons suggest that, under a setting of horizontal product differentiation, an environmental regulation (either on polluting firms or consumers buying their products) yields higher social welfare than the absence of policy. Moreover, the proportion of consumers who prefer green products affects the welfare gains from a subsidy or tax policy.

scholarly journals Horizontal Product Differentiation: Disclosure and Competition

2016 ◽  
Vol 64 (4) ◽  
pp. 589-620 ◽  
Author(s):  
Maarten C.W. Janssen ◽  
Mariya Teteryatnikova
Keyword(s):  
Product Differentiation ◽  
Horizontal Product Differentiation

scholarly journals Product Differentiation in a Vertical Structure

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Tien-Der Han ◽  
M. Emranul Haque ◽  
Arijit Mukherjee
Keyword(s):  
Product Differentiation ◽  
Vertical Structure ◽  
Returns To Scale ◽  
Pricing Strategy ◽  
Bertrand Competition ◽  
Price Determination ◽  
Free Entry ◽  
Horizontal Product Differentiation ◽  
Goods Market ◽  
Cournot And Bertrand Competition

AbstractWe consider final goods producers’ preference for horizontal product differentiation in the presence of strategic input price determination. Final goods producers may not prefer maximal differentiation but may prefer moderate differentiation under both Cournot and Bertrand competition in the final goods market if product differentiation does not increase the market size significantly and there is either free entry in the input market or the input supplier has increasing returns to scale technology. Thus, we provide a new rationale for moderate product differentiation. Our reasons are different from the existing reasons of mixed pricing strategy, endogenous leadership, no-buy option for the consumers and the relative performance incentive schemes.

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