Nonlinear pricing and competition intensity in a Hotelling-type model with discrete product and consumer types

2026-06-27http://hdl.handle.net/123456789/109919This paper develops a Hotelling model with discrete product and consumer types. We analyze the impact of horizontal differentiation (competition intensity) on relative prices. We find that the optimal price ratio of high- to low-quality products decreases with less competition.Limited AccesspricesdiversificationmodelsNonlinear pricing and competition intensity in a Hotelling-type model with discrete product and consumer typesJournal Article