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Vertical differentiation with non‐uniform consumers' distribution
Author(s) -
Bonnisseau JeanMarc,
LahmandiAyed Rim
Publication year - 2007
Publication title -
international journal of economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 11
eISSN - 1742-7363
pISSN - 1742-7355
DOI - 10.1111/j.1742-7363.2007.00054.x
Subject(s) - distribution (mathematics) , economics , property (philosophy) , mathematical economics , mathematics , mathematical analysis , philosophy , epistemology
This note explores a vertical differentiation model with a continuous non‐uniform consumers' distribution. First, a result concerning the finiteness property obtained with uniform consumers' distribution is generalized. Second, we prove an existence result of price equilibrium when the distribution is concave. Finally, we exhibit a counter‐example to the existence of price equilibrium to show that the concavity assumption is not superfluous.