Vertical and Horizontal competition under the non-uniform consumer distribution.

• Main Authors: Hsu, Shih-Hua, 徐奭驊
• Other Authors: Tsui, Hsiao-Chien
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/95060635323810284480

碩士 === 國立中正大學 === 國際經濟研究所 === 99 === 　This paper investigates the impact of consumer concentration for a horizontal and vertical competition. Using an extended Hotelling's Model, we assumed both of firms choose their locations, qualities of product, and prices with non-uniform consumer densities. We also discuss the effect of a shift in consumers’ relative tastes between two products. We find the equilibrium locations and prices are affected by the consumer density, but the qualities are always maintained at the highest. We also discussed after the consumer distribution shift, the firm which the consumer prefer their product will get more market share, higher price level, and more profit. Finally, we issued the relation between product differentiation and social welfare, the social welfare is optimization when the firms product the highest quality goods.