Endogenous Quality Choice: Price vs. Quantity Competition
研究在垂直产品差异化模型中，固定质量成本与可变质量成本下，价格竞争与数量竞争对均衡解的影响，发现价格竞争下企业更倾向于差异化且社会福利更高。
Two versions of a vertical product differentiation model, one with fixed and the other with variable costs of quality, are analyzed to study how the hypotheses of price versus quantity competition affect equilibrium solutions. Product differentiation arises under all the scenarios considered, contrasting previous findings of symmetric quality choices under Cournot behavior. However, to relax harsher market competition, firms differentiate more under Bertrand than under Cournot. A simple welfare measure also indicates that the economy is better-off when firms compete on prices-with fixed costs of quality, not only consumer but also producer surplus is higher under price competition. Copyright 1993 by Blackwell Publishing Ltd.