rlecture21 - imperfect competition 2

rlecture21 - imperfect competition 2 - Topic 9 Competition...

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Topic 9: Competition between firms (2) Models of product differentiation USC Marshall
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Models of product differentiation Competition with differentiated products: – Products are rarely perfectly homogeneous • An IBM is not a Dell •A BMW is not a Mercedes • Playstation is not an Xbox • Coke is not Pepsi • … – Consequence: raising price a little bit will not cause the firm to lose all its demand USC Marshall
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