Product differentiation and price collusion

Article Abstract:

An analysis of the impact of price collusion on product differentiation is presented. The analysis examines price fixing conditions with or without money transfers while applying horizontal product levels. It is shown that firms sell similar products when monetary transfer conditions are absent while its presence generates product differentiation. In addition, product selection is the primary catalyst of such conditions.

Price fixing

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Product differentiation with consumer arbitrage

Article Abstract:

The equilibrium to a game where two firms set delivered price schedules and consumers simultaneously declare where they want to take delivery of the product is determined. Equilibrium pricing policies provide incentives for consumers to purchase more standard varieties and not to demand their preferred varieties.

Science & research, Analysis, Equilibrium (Economics), Arbitrage

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Vertical product differentiation, network externalities, and compatibility decisions

Article Abstract:

Research is presented concerning the development of a model of vertical product differentiation in order to analyse the subgame perfect equilibrium which exists within a four-stage game.

Marketing, Economic policy, Products, Business enterprises, Social networks

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