This week we look more at product differentiation, covering

  • Price discrimination in the Hotelling (1929) set-up.
  • The Salop (1979) circular-city model, and how product proliferation may be used for entry deterrence.
  • The Shaked and Sutton (1982) quality choice model of vertical differentiation.
  • Some empirics, and other issues.

Lecture 6

Lecture 6: Product differentiation 2

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