Monopolistic Dynamics with Endogenous Product Differentiation
This research considers the problem of a price-discriminating monopolist aiming at choosing output and investing in product differentiation to foster consumers perceiving products as being heterogeneous in different market segments. It then introduces bounded rationality and concentrates on the dyna...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2022-01-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/10/3/302 |
| _version_ | 1797486424475303936 |
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| author | Andrea Caravaggio Luca Gori Mauro Sodini |
| author_facet | Andrea Caravaggio Luca Gori Mauro Sodini |
| author_sort | Andrea Caravaggio |
| collection | DOAJ |
| description | This research considers the problem of a price-discriminating monopolist aiming at choosing output and investing in product differentiation to foster consumers perceiving products as being heterogeneous in different market segments. It then introduces bounded rationality and concentrates on the dynamic analysis showing the existence of several dynamic phenomena caused by the interaction between endogenous product differentiation and gradient dynamics. Though product differentiation can generally increase market power and profits, in this context it can generate a lack of coordination between the managers working in each segment. |
| first_indexed | 2024-03-09T23:33:01Z |
| format | Article |
| id | doaj.art-4b7564d4d0954a4d94d7113e6b386b76 |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-09T23:33:01Z |
| publishDate | 2022-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-4b7564d4d0954a4d94d7113e6b386b762023-11-23T17:05:23ZengMDPI AGMathematics2227-73902022-01-0110330210.3390/math10030302Monopolistic Dynamics with Endogenous Product DifferentiationAndrea Caravaggio0Luca Gori1Mauro Sodini2Department of Economics, University of Foggia, Largo Papa Giovanni Paolo II, I-71121 Foggia, ItalyDepartment of Law, University of Pisa, Via Collegio Ricci 10, I-56126 Pisa, ItalyDepartment of Law, University of Naples Federico II, I-80138 Napoli, ItalyThis research considers the problem of a price-discriminating monopolist aiming at choosing output and investing in product differentiation to foster consumers perceiving products as being heterogeneous in different market segments. It then introduces bounded rationality and concentrates on the dynamic analysis showing the existence of several dynamic phenomena caused by the interaction between endogenous product differentiation and gradient dynamics. Though product differentiation can generally increase market power and profits, in this context it can generate a lack of coordination between the managers working in each segment.https://www.mdpi.com/2227-7390/10/3/302endogenous differentiationnonlinear monopolybifurcations |
| spellingShingle | Andrea Caravaggio Luca Gori Mauro Sodini Monopolistic Dynamics with Endogenous Product Differentiation Mathematics endogenous differentiation nonlinear monopoly bifurcations |
| title | Monopolistic Dynamics with Endogenous Product Differentiation |
| title_full | Monopolistic Dynamics with Endogenous Product Differentiation |
| title_fullStr | Monopolistic Dynamics with Endogenous Product Differentiation |
| title_full_unstemmed | Monopolistic Dynamics with Endogenous Product Differentiation |
| title_short | Monopolistic Dynamics with Endogenous Product Differentiation |
| title_sort | monopolistic dynamics with endogenous product differentiation |
| topic | endogenous differentiation nonlinear monopoly bifurcations |
| url | https://www.mdpi.com/2227-7390/10/3/302 |
| work_keys_str_mv | AT andreacaravaggio monopolisticdynamicswithendogenousproductdifferentiation AT lucagori monopolisticdynamicswithendogenousproductdifferentiation AT maurosodini monopolisticdynamicswithendogenousproductdifferentiation |