On price competition with complementary goods
(2001) Economics Letters — Vol. 70, n° 3, p. 431-437 (2001)
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- Authors
- Abstract
- We consider a duopoly industry with two separate firms each selling an indivisible product. The joint consumption of these goods has a specific value for the consumers which exceeds the mere addition of utilities when products are consumed in isolation : the higher this excess, the larger the complementarity between the goods. We analyse price equilibria in this market as related to the degree of complementarity existing between the two products.
- Affiliations
National Institute of Statistics and Economic Studies Government of France Research Center for Economics and Statistics
Citations
Jaskold Gabszewicz, J., Sonnac, N., & Wauthy, X. (2001). On price competition with complementary goods. Economics Letters, 70(3), 431-437. https://doi.org/10.1016/S0165-1765(00)00383-9 (Original work published 2001)