To Differentiate or Not to Differentiate: A Question when Some Consumers Are Loyal
I analyze a duopoly that competes first in product characteristics and then in prices. I show that when there exist consumers that are loyal to specific brands with no regard for product characteristics, the second-stage price game doesn’t have a pure-strategy equilibrium or symmetric mixed-strategy...
Main Author: | |
---|---|
Format: | Article |
Language: | English |
Published: |
General Association of Economists from Romania
2010-10-01
|
Series: | Theoretical and Applied Economics |
Subjects: | |
Online Access: | http://www.ectap.ro/articole/522.pdf |