Mix and Match Compatibility with Vertical Product Dimensions
研究双寡头市场中,每个企业生产系统两个组件,组件兼容时消费者可混搭不同企业组件。模型考虑垂直质量差异和消费者偏好相关性,发现兼容性会提高组件价格总和及企业利润。
This article considers a duopoly in which each firm produces two components of a system. If the components are compatible, consumers may mix and match the firms' components. The system components and consumer tastes are assumed to differ with regard to vertical characteristics. In the model, one firm may be the quality leader in one or both characteristics. Moreover, a consumer's taste for the quality of one component may be perfectly correlated with, or independent of, his taste for the quality of the other component. It is shown that in all cases the sum of each producer's component prices is (weakly) higher if the components are compatible. The same is true of producer profits.