Exploring Stackelberg profit ordering under asymmetric product differentiation

Dyuti Banerjee, Ishita Chatterjee

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1 Citation (Scopus)


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.
Original languageEnglish
Pages (from-to)309 - 315
Number of pages7
JournalEconomic Modelling
Publication statusPublished - 2014

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