| Article ID: | iaor20102916 |
| Volume: | 37 |
| Issue: | 1 |
| Start Page Number: | 43 |
| End Page Number: | 46 |
| Publication Date: | Jan 2009 |
| Journal: | Operations Research Letters |
| Authors: | Perakis Georgia, Farahat Amr |
We provide sharp lower and upper bounds on the ratio of decentralized to centralized profits when multiproduct firms offering differentiated products engage in price competition. The bounds depend on the demand sensitivity matrix but are independent of marginal costs.