Endogenous Timing In A Mixed Duopoly With Endogenous Vertical Differentiation
Published online on July 02, 2012
Abstract
We consider a game of endogenous timing with observable delay in a mixed duopoly with endogenous vertical differentiation in the context of sequential quality and price choice. We find that a simultaneous play in the first opportunity at each stage turns out to be the unique subgame perfect Nash equilibrium, which contrasts with the endogenous timing in a purely private duopoly.