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...Nesting horizontal and vertical dierentiation a note jean j gabszewicz xavier y wauthy june abstract weexplore variant of the hotelling model which allows to nest hori zontal into unied setup whose key parameter is relative natural market size rms in this equilibrium prices increase whenever population s disparity decreases we also explore properties case entry by vertically dierenti ated product an otherwise horizontally dierentiated industry introduction duopoly models it now customary distinguish between according whether consumers are unanimous or not their ranking variants when these sold at same price prevails if equal all opt for more details see beath katsoulacos under tastes heterogenous therefore possible segment preferred may then associate each group who prefer that over other dene as its extreme one rm consists whole while has zero share contrast accomodates very large class markets congurations instance spatial competition la located left extremity linear stands does view...