Aggregation in a model of price competition

In a model of price competition single-product firms compete for consumers. Consumers purchase a variable quantity of one of the differentiated goods. The paper provides results on equilibrium existence when consumers are het erogeneous in their evaluation of the differentiated goods among each other , their evaluation of the differentiated goods relative to the outside good , and heterogeneous in income. Furthermore, I provide sufficient conditions for dominance solvability and monotone comparative statics. Classification Numbers: D43, D11. (C) 2000 Academic Press.