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Keywords:

  • endogenous timing;
  • private firm;
  • public firm;
  • vertical differentiation;
  • D43;
  • H42;
  • L13

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.