On production costs in vertical differentiation models

C-Tier
Journal: Economics Letters
Year: 2010
Volume: 109
Issue: 3
Pages: 183-186

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We analyze the effects of the introduction of a unit production cost in a vertical differentiation model with fixed costs of quality improvement: For a low (high) unit cost, a rise in cost reduces (increases) product differentiation and prices.

Technical Details

RePEc Handle
repec:eee:ecolet:v:109:y:2010:i:3:p:183-186
Journal Field
General
Author Count
1
Added to Database
2026-01-24