Chapter 6: Oligopoly and product differentiation
Jean J. Gabszewicz
and
Ornella Tarola
Category:
Handbook Chapter
Published:
23 Feb 2018
Page Range:
137–180
Collection:
Economics 2018
DOI:
https://doi.org/10.4337/9781785363283.00012
Restricted access

In this chapter, we survey some recent contributions analyzing oligopoly theory and product differentiation from the viewpoint of models of localized competition. In other words, we exclude from our analysis the field of monopolistic competition (see Thisse and Uschev, Chapter 5 in this Handbook) and oligopoly theory as in the neoclassical vein (Vives, 2000). We start by recalling some elements of the microeconomic theory of consumer demand based on characteristics, as introduced by Lancaster (1966). Then, we present successively the theory of horizontal product differentiation, based on the article by Hotelling (1929) and the theory of vertical product differentiation, based on the article by Gabszewicz and Thisse (1979). Then, we develop a model nesting both horizontal and vertical product differentiation (Gabszewicz and Wauthy, 2012). Finally, we propose two applications of this approach, one based on network externalities and the other on environmental economics.

You are not authenticated to view the full text of this chapter or article.

Access options

Get access to the full article by using one of the access options below.

Other access options

Redeem Token

Institutional Login

Log in with Open Athens, Shibboleth, or your institutional credentials

Login via Institutional Access

Personal login

Log in with your Elgar Online account

Login with your Elgar account
Cover Handbook of Game Theory and Industrial Organization, Volume I
Handbook of Game Theory and Industrial Organization, Volume I
Edited by
Luis C. Corchón
and
Marco A. Marini
Handbook
Published:
23 Feb 2018
Print ISBN:
9781785363276
eISBN:
9781785363283
DOI:
https://doi.org/10.4337/9781785363283
Pages:
576
Collection:
Economics 2018
Buy Print