Competition in multi-characteristics spaces: Hotelling was almost right

被引:169
作者
Irmen, A [1 ]
Thisse, JF
机构
[1] Univ Lausanne, HEC, DEEP, CH-1015 Lausanne, Switzerland
[2] Catholic Univ Louvain, CORE, B-1348 Louvain, Belgium
[3] Ecole Natl Ponts & Chaussees, CERAS, F-75343 Paris, France
关键词
product positioning; multi-characteristics space;
D O I
10.1006/jeth.1997.2348
中图分类号
F [经济];
学科分类号
02 ;
摘要
Lancasterian models of product differentiation typically assume a one-dimensional characteristics space. We show that standard results on prices and locations no longer hold when firms compete in a multi-characteristics space. In the location game with n characteristics, firms choose to maximize differentiation in the dominant characteristic and to minimize differentiation in the others when Ihc salience coefficient of the former is sufficiently large, Thus, the principle of minimum differentiation holds for all but one characteristic. Furthermore, prices do not necessarily fall when products get closer in the characteristics space because price competition is relaxed when products are differentiated enough in the dominant characteristic. (C) 1998 Academic Press.
引用
收藏
页码:76 / 102
页数:27
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