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Concurrence en catalogue dans le duopole d'Hotelling

Author

Listed:
  • Pierre Fleckinger
  • Thierry Lafay

Abstract

We study a duopoly on a market with horizontal differentiation where firms compete in catalog : firms choose a price and a location in the consumer? space. Whereas there is no equilibrium in pure strategy for the simultaneous game, we show that an equilibrium always exists in a sequential competition. In this subgame perfect equilibrium the leader chooses a more specific product at a lower price than the follower. Thus the leader earns finally less than the follower. This introduces a tension between the temptation of attrition, which leads to an unstable configuration, and the will to guarantee a stricly positive profit. Classification JEL : L11, H41, D43, M3.

Suggested Citation

  • Pierre Fleckinger & Thierry Lafay, 2006. "Concurrence en catalogue dans le duopole d'Hotelling," Revue économique, Presses de Sciences-Po, vol. 57(3), pages 573-581.
    • Handle: RePEc:cai:recosp:reco_573_0573
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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