@inproceedings{eb464816535b4287814738fe6e9ac124,
title = "Product differentiation under bounded rationality",
abstract = "We study product differentiation equilibria and dynamics on the Salop circle under bounded rationality. Due to bounded rationality, firms tend to agglomerate in pairs. Upon adding a second tier of component suppliers, downstream assemblers may escape pairwise horizontal agglomeration. Moreover, we find a persistent propensity to vertically agglomerate near suppliers as well as ubiquitous dynamic equilibria. Conclusively, to understand product differentiation equilibria and dynamics, products and their supply chains need to be disaggregated.",
author = "B. Vermeulen and {Poutr{\'e}, La}, J.A. and {Kok, de}, A.G. and A. Pyka",
year = "2015",
doi = "10.1007/978-3-319-13359-1_53",
language = "English",
series = "Proceedings in Adaptation, Learning and Optimization",
publisher = "Springer",
pages = "695--709",
editor = "H. Handa and H. Ishibuchi and Y.-S. Ong and K.-C. Tan",
booktitle = "Proceedings of the 18th Asia Pacific Symposium on Intelligent and Evolutionary Systems",
address = "Germany",
}