Two results for asymmetric multiproduct duopoly

Abstract

A case of multiproduct duopoly is considered with a different number of products produced by each firm. Given logit and nested logit substitutability patterns, it is shown that a firm offering more products charges higher price in equilibrium.

Acknowledgements

The author thanks Stan Reynolds for helpful comments and claims all property rights for any remaining errors and omissions.

Notes

The results apply to a general case of duopoly with firm 2 offering fewer products than firm 1.

Extensions to the model with outside alternative gives the same results.

Note that in this case