A Duopoly Model of Differentiated Products and the Loss of Confidence in a Domestic Product

摘要: In the main duopoly models such as that of Cournot, Bertrand and Dixit, products are homogeneous price one producer is expressed a function variables output or other producer. However, in real world, differentiated determination also depends on consumers’ behavior market structure. this paper, contrast with previous models, we therefore set up comprehensive model which domestic foreign compete market. Furthermore, when there loss confidence consumers product, paper determines percentage decrease product’s should resulting price-cost margin he must incur to maintain elasticity substitution constant preserve his share.