Monotone Profitability Ranking in a Differentiated Oligopoly
Stern School of Business Working Paper No. EC-04-28
33 Pages Posted: 23 Nov 2004
Date Written: September 2, 2004
In a familiar setting of vertical differentiation where firms produce goods of distinct qualities at potentially different unit costs, I identify sufficient conditions for producing a higher quality good to be more (less) profitable.
Keywords: Vertical differentiation, Bertrand oligopoly, imperfect competition
JEL Classification: D43, L13
Suggested Citation: Suggested Citation