On the consistent use of linear demand systems if not all varieties are available
- Linear demand formulations for price competition in horizontally differentiated products are sometimes used to compare situations where additional varieties become available, e.g. due to market entry of new firms. We derive a consistent demand system to analyze such situations and highlight potential problems that can arise from an inconsistent approach.
Author: | Felix Höffler |
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URN: | urn:nbn:de:hbz:992-opus4-5102 |
Series (Serial Number): | WHU – Working Paper Series in Economics (WP 08/01) |
Document Type: | Working Paper |
Language: | English |
Date of Publication (online): | 2017/11/20 |
Release Date: | 2017/11/20 |
Tag: | Markteintritt; Produktdifferenzierung; Vorzüge bezüglich Auswahl Market entry; Preferences for variety; Product differentiation |
Page Number: | 6 |
Institutes: | WHU Economics Group / Chair of Econometrics and Statistics |
JEL-Classification: | D Microeconomics / D1 Household Behavior and Family Economics |
L Industrial Organization / L1 Market Structure, Firm Strategy, and Market Performance | |
Licence (German): | Copyright for this publication |