All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Rim Lahmandi-Ayed
 
''A note on quality choice with an extended Mussa and Rosen's model''
( 2007, Vol. 12 No.15 )
 
 
We suggest a model derived from the well-known Mussa and Rosen's model, in which two populations of consumers of opposite tastes co-exist: they rank in exactly the reverse order variants sold at the same price. This model may account for linked and contradictory characteristics in products (as for instance nutritional quality and taste), with consumers attaching more importance to one or to the other aspect. The subgame perfect equilibrium is fully characterized for a costless duopoly choosing qualities then prices.
 
 
Keywords: opposite tastes.
JEL: L1 - Market Structure, Firm Strategy, and Market Performance: General
 
Manuscript Received : Jun 07 2007 Manuscript Accepted : Jul 02 2007

  This abstract has been downloaded 507 times                The Full PDF of this paper has been downloaded 87782 times