On the welfare effects of trade and innovation in vertically differentiated products

1989 ◽  
Vol 49 (2) ◽  
pp. 165-182
Author(s):  
Yannis Katsoulacos
Keyword(s):  
Welfare Effects ◽  
Differentiated Products ◽  
Vertically Differentiated Products

Probabilistic Selling for Vertically Differentiated Products with Salient Thinkers

2019 ◽  
Vol 38 (3) ◽  
pp. 442-460 ◽  
Author(s):  
Quan Zheng ◽  
Xiajun Amy Pan ◽  
Janice E. Carrillo
Keyword(s):  
Differentiated Products ◽  
Vertically Differentiated Products

Unit taxes andad valoremtaxes with vertically differentiated products

2014 ◽  
Vol 21 (17) ◽  
pp. 1221-1225 ◽  
Author(s):  
Francisco Galera ◽  
Pedro Mendi ◽  
Juan Carlos Molero
Keyword(s):  
Differentiated Products ◽  
Unit Taxes ◽  
Vertically Differentiated Products

scholarly journals Competitive Mixed Bundling of Vertically Differentiated Products

2012 ◽  
Vol 12 (1) ◽  
Author(s):  
Illtae Ahn ◽  
Kiho Yoon
Keyword(s):  
Product Differentiation ◽  
Consumer Surplus ◽  
Competitive Environment ◽  
Differentiated Products ◽  
Horizontal Differentiation ◽  
Vertical Product Differentiation ◽  
Quality Differentiation ◽  
Comparative Static Analysis ◽  
Mixed Bundling ◽  
Vertically Differentiated Products

Abstract We examine mixed bundling in a competitive environment that incorporates vertical product differentiation. We show that, compared to the equilibrium without bundling, (i) prices, profits and social welfare are lower, whereas (ii) consumer surplus is higher in the equilibrium with mixed bundling. In addition, the population of consumers who purchase both products from the same firm is larger in the equilibrium with mixed bundling. These results are largely in line with those obtained in the previous literature on competitive mixed bundling with horizontal differentiation. Further, we conduct a comparative static analysis with respect to changes in quality differentiation parameters. When the quality gap between brands narrows under no bundling and symmetric mixed bundling, prices and profits decrease. When quality differentiation is asymmetric across products, however, complicated effects occur on prices and profits due to strategic interdependence that mixed bundling creates.

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