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Strategic product variety and quality choice

Author

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  • Granero, Lluís M.

Abstract

We examine the linkages between strategic product assortment, quality choice, and pricing by multi-product firms as well as the welfare effects from those linkages. The analysis shows that strategic effects can lead to relevant inefficiencies. Specifically, the analysis identifies effects which can induce insufficient or excessive product quality relative to the socially optimal level of quality.

Suggested Citation

  • Granero, Lluís M., 2019. "Strategic product variety and quality choice," Economics Letters, Elsevier, vol. 182(C), pages 10-14.
    • Handle: RePEc:eee:ecolet:v:182:y:2019:i:c:p:10-14
    DOI: 10.1016/j.econlet.2019.05.033
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    Citations

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    Cited by:

    1. Begoña Casino & Lluís M. Granero, 2021. "Green products, market structure, and welfare," Journal of Economics, Springer, vol. 134(2), pages 103-125, October.
    2. Oksana Loginova, 2022. "Price competition online: Platforms versus branded websites," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(2), pages 259-283, April.

    More about this item

    Keywords

    Product variety; Quality; Multi-product oligopoly; Spatial models;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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