Lecture 7: More on product differentiation

In this lecture we complete our analysis of product differentiation, looking at location choice, welfare, discriminatory equilibria, product proliferation and some empirics. Lecture 7


5 thoughts on “Lecture 7: More on product differentiation

  1. On slide 6 I don’t understand how you calculated the result for B’s FOC, I can’t work out why there is a +2t(b-a) on the top half of the fraction. Can you explain, please? Thanks.

  2. This example appears to be more complex, so is probably better to work from.
    I’m fine with finding the value of x*, I just don’t understand how to calculate 1-x*. – I still don’t understand the +2t(b-a).

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