ABSTRACT
This chapter expands interaction to include both the ith and jth commodity producers. It examines closely the consequences of introducing a second commodity. As will be shown through the remainder of this chapter, decision making on the part of the jth commodity producer, who interacts with an individual consumer, may affect transactions between that consumer and the producer of the ith commodity. As we will see shortly in our discussion of individual consumer demand, there is no incentive on the part of the consumer to accurately reveal his or her willingness-to-pay for v i2, nor for any other level of quality. In general, we will make the simplifying assumption that, under the circumstances illustrated in, transactions do not occur between an individual consumer and producer. It examines the effect of a consumer window in vixi space on consumer-producer interaction in xixj space, and then follow that with an examination of consumer-producer interaction under a window in xipi demand space.
