Browsing by Subject "Price and quantity contracts"

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    Price versus quantity in a duopoly of vertical differentiation with loss-averse consumers
    (Elsevier, 2021-03) Martínez Sánchez, Francisco; Métodos Cuantitativos para la Economía y la Empresa
    In a model àla Mussa and Rosen (1978) in which consumers are loss-averse, I check the robustness of the result obtained by Tanaka (2001) . As he did, I find that the quantity con- tract is a dominant strategy for both firms. Thus, Cournot is the outcome in equilibrium. Finally, I find that loss aversion in general intensifies competition.