Vertical differentiation with non-uniform consumers' distribution |
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| Authors: | Jean-Marc Bonnisseau Rim Lahmandi-Ayed |
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| Affiliation: | Paris School of Economics, UniversitéParis 1 Panthéon-Sorbonne, Centre d'Economie de la Sorbonne, Paris, France.;Laboratoire d'Economie et de Gestion Industrielle-Ecole Polytechnique de Tunisie, La Marsa Tunisia and Ecole Supérieure de la Statistique et d'Analyse de l'Information, La Charguia, Tunisia. Email: |
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| Abstract: | This note explores a vertical differentiation model with a continuous non-uniform consumers' distribution. First, a result concerning the finiteness property obtained with uniform consumers' distribution is generalized. Second, we prove an existence result of price equilibrium when the distribution is concave. Finally, we exhibit a counter-example to the existence of price equilibrium to show that the concavity assumption is not superfluous. |
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| Keywords: | vertical differentiation non-uniform distribution finiteness property price equilibrium existence |
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