Exploring Stackelberg profit ordering under asymmetric product differentiation

C-Tier
Journal: Economic Modeling
Year: 2014
Volume: 36
Issue: C
Pages: 309-315

Authors (2)

Score contribution per author:

0.505 = (α=2.02 / 2 authors) × 0.5x C-tier

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

Abstract

The literature on differentiated products only considers symmetric cross-price effects and shows that the profit ordering of firms in a sequential set-up is uni-directional. This paper shows that uni-directional profit ordering breaks down under asymmetric product differentiation. Above a unique cross-price effect level the follower's profit exceeds that of the leader. The reverse is true below this level. This result holds for both substitutes and complements.

Technical Details

RePEc Handle
repec:eee:ecmode:v:36:y:2014:i:c:p:309-315
Journal Field
General
Author Count
2
Added to Database
2026-01-25