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Relaxing Price Competition Through Product Differentiation

Avner Shaked and John Sutton
The Review of Economic Studies
Vol. 49, No. 1 (Jan., 1982), pp. 3-13
Published by: Oxford University Press
Stable URL: http://www.jstor.org/stable/2297136
Page Count: 11
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Relaxing Price Competition Through Product Differentiation
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Abstract

The notion of a Perfect Equilibrium in a multi-Stage game is used to characterize industry equilibrium under Monopolistic Competition, where products are differentiated by quality.

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