Fairness is intuitive
Research output: Working paper › Research › peer-review
Consumers are assumed to be unable to discriminate between two goods of differing qualities provided that the qualities are close enough. It is shown that in a vertically differentiated duopoly this results in multiple equilibria. Demand for each firm's good is reduced. Firms' profits may be higher or lower depending on which equilibrium is selected.
Original language | English |
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Place of Publication | Copenhagen |
Publisher | Springer |
Number of pages | 32 |
DOIs | |
Publication status | Published - 2014 |
Series | University of Copenhagen. Institute of Economics. Discussion Papers (Online) |
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Number | 10 |
Volume | 2014 |
ISSN | 1601-2461 |
Bibliographical note
JEL Classification: D03, D43
- Faculty of Social Sciences - Perception, bounded rationality, vertical differentiation, oligopoly
Research areas
ID: 104680081