On stability in competition: Tying and horizontal product differentiation

被引:3
作者
Egli, Alain [1 ]
机构
[1] Univ Bern, Volkswirtschaft Inst, Abt Wirtschaftstheor, CH-3001 Bern, Switzerland
关键词
horizontal product differentiation; hotelling; tie-in sales; equilibrium existence;
D O I
10.1007/s11151-007-9127-y
中图分类号
F [经济];
学科分类号
02 ;
摘要
We combine Hotelling's model of product differentiation with tie-in sales. A monopolist in one market competes with another firm in a second market. In equilibrium firms choose zero product differentiation. Due to the tying structure no firm can gain the whole market by a small price reduction. A differentiation effect due to tie-in sales leads to this equilibrium stability.
引用
收藏
页码:29 / 38
页数:10
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