Différenciation des produits dans des oligopoles verticaux successifs

Translated title of the contribution: Product differentiation in successive vertical oligopolies

Paul Belleflamme, Eric Toulemonde

Research output: Contribution to journalArticlepeer-review


This is a successive oligopoly model with two varieties of a final product. Downstream firms choose one variety to sell on a final market. Upstream firms specialize in the production of one input specifically designed for one variety, but they also produce the input for the other variety at an extra cost. We show that as more downstream firms choose one particular variety, more upstream firms specialize in the input specific to that variety, and vice-versa. Multiple equilibria may result, and the softening effect of product differentiation on competition might not be strong enough to induce maximal differentiation.

Translated title of the contributionProduct differentiation in successive vertical oligopolies
Original languageFrench
Pages (from-to)523-545
Number of pages23
JournalCanadian Journal of Economics
Issue number3
Publication statusPublished - 1 Jan 2003
Externally publishedYes


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