Equilibrium with Product Differentiation
构建了一个结合空间模型和代表性消费者模型的产品差异化模型，分析单一价格和多重价格均衡的性质，并探讨消费者偏好强度、市场进入对价格加成的影响。
A model of product differentiation which combines elements of both spatial and representative consumer formulations is used to examine the properties of single- and multiple-price equilibria. Conditions under which decreases in the intensity of consumer preferences reduce price are given. It is shown that, with certain types of demand curves, entry can eliminate price-cost markups even given product differentiation. If competition is localized, it is demonstrated that entry does not affect the markup. Finally, the effect of spurious product differentiation on price is examined.