In this paper we consider a differentiated oligopoly with two product varieties that are supplied by two groups of firms. We assume that firms can change the variety they produce, thus affecting the intensity of intra-brand competition. We compute the Cournot solution of the game and analyze its sensitivity to the model parameters. We also study the impact of intra-brand competition on the equilibrium of the game and of the industry composition.
Published January 2020 , 28 pages