Vertical differentiation with non-uniform consumers’ distribution
Journal article: 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.
Author(s)
Jean-Marc Bonnisseau, Rim Lahmandi-Ayed
Journal
- International Journal of Economic Theory
Date of publication
- 2007