EQUILIBRIUM PRODUCT LINES - COMPETING HEAD-TO-HEAD MAY BE LESS COMPETITIVE

• 成果类型: Article
• 署名作者: KLEMPERER, P
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• 发表日期: 1992
• 页码: 740-755
• 关键词: switching costs; network externalities; price-competition; compatibility; industry; MARKETS

摘要

I suggest a new model of demand for variety that explains. why competing firms may choose very similar product fines: if firms offer different product ranges, some consumers use multiple suppliers to increase variety, and since these consumers' purchases will be sensitive to the difference in firms' prices, the market may be fairly competitive. If, instead, firms offer identical product ranges, each consumer purchases from one firm only, because of costs of using additional suppliers, so the market may be less competitive and equilibrium prices higher. This contrasts with the standard intuition that firms minimize competition by differentiating their products.