Multidimensional Product Differentiation with Discrete Characteristics : The B.E. Journal of Theoretical Economics uses cookies, tags, and tracking settings to store information that help give you the very best browsing experience.
To understand more about cookies, tags, and tracking, see our Privacy Statement
I accept all cookies for the De Gruyter Online site

Jump to ContentJump to Main Navigation

The B.E. Journal of Theoretical Economics

Editor-in-Chief: Schipper, Burkhard

Ed. by Fong, Yuk-fai / Peeters, Ronald / Puzzello , Daniela / Rivas, Javier

IMPACT FACTOR increased in 2014: 0.300

SCImago Journal Rank (SJR) 2014: 0.581
Source Normalized Impact per Paper (SNIP) 2014: 0.516
Impact per Publication (IPP) 2014: 0.387

Mathematical Citation Quotient (MCQ) 2014: 0.08

30,00 € / $42.00 / £23.00

Get Access to Full Text

Multidimensional Product Differentiation with Discrete Characteristics

Mariano G. Runco1

1Auburn University, Montgomery,

Citation Information: The B.E. Journal of Theoretical Economics. Volume 12, Issue 1, ISSN (Online) 1935-1704, DOI: 10.1515/1935-1704.1823, April 2012

Publication History

Published Online:

In this paper we consider a duopoly model of multidimensional vertical product differentiation where product features are discrete and consumers' tastes are described by a joint density function that belongs to the class of Elliptically Contoured Distributions. We prove that in any equilibrium one firm always includes all characteristics in the product. Moreover, when types have perfect positive correlation the unique equilibrium involves maximum differentiation. More importantly, the main result states that the other firm's equilibrium level of differentiation is determined by the correlation among types.

Keywords: product differentiation; oligopolistic competition; product design; price competition; log-concavity; elliptically contoured distributions

Comments (0)

Please log in or register to comment.