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.

Download full text files

Export metadata

Additional Services

Search Google Scholar Statistics
Metadaten
Author:Felix Höffler
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