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...
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| Format: | Article |
| Language: | English |
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General Association of Economists from Romania
2010-10-01
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| Series: | Theoretical and Applied Economics |
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| Online Access: |
http://store.ectap.ro/articole/522.pdf
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