IDEAS home Printed from https://ideas.repec.org/a/bpj/germec/v7y2006i3p339-361.html
   My bibliography  Save this article

Price Competition and Product Differentiation when Goods have Network Effects

Author

Listed:
  • Conrad Klaus

    (University of Mannheim,Mannheim, Germany)

Abstract

The objective of our approach is to develop a model that captures horizontal product differentiation under environmental awareness with price competition whereby environmentally friendly products are costlier to produce. As an example, we refer to automobile producers offering cars with a gasoline-powered engine and one with a natural gas-powered engine. The network of petrol stations provides the complementary good. We use a two-stage game in prices and characteristics to analyse the market structure. In order to find out whether a private decision on the type of engine coincides with a socially optimal product differentiation, we determine the position of the two types of engine by a welfaremaximizing authority.

Suggested Citation

  • Conrad Klaus, 2006. "Price Competition and Product Differentiation when Goods have Network Effects," German Economic Review, De Gruyter, vol. 7(3), pages 339-361, August.
    • Handle: RePEc:bpj:germec:v:7:y:2006:i:3:p:339-361
    DOI: 10.1111/j.1468-0475.2006.00159.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1468-0475.2006.00159.x
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1111/j.1468-0475.2006.00159.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dominic Hauck & Erik Ansink & Jetske Bouma & Daan van Soest, 2014. "Social Network Effects and Green Consumerism," Tinbergen Institute Discussion Papers 14-150/VIII, Tinbergen Institute.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:germec:v:7:y:2006:i:3:p:339-361. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.