Abstract
In the location models studied in the literature, consumers buy one unit of two, or more, horizontally differentiated products. As such, those models are for durable goods. For ordinary consumption goods like oranges, a model is developed, in which consumers may buy more than one unit, possibly different units, of a horizontally differentiated product. Demand and different rationing rules are derived for such a model, based on reservation prices that depend on quantities bought and the quality of both goods.
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Furth, D. (1994). Demand in a Duopoly with Horizontal Product Differentiation. In: Gilles, R.P., Ruys, P.H.M. (eds) Imperfections and Behavior in Economic Organizations. Theory and Decision Library, vol 11. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-1370-0_7
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DOI: https://doi.org/10.1007/978-94-011-1370-0_7
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