Issue 2

June 2001

Product Diversity in Asymmetric Oligopoly: Is the Quality of Consumer Goods too Low?

We analyse an oligopoly model incorporating horizontal differentiation and quality differences. High quality goods are overpriced and underproduced.

The Antitrust Implications of Capacity Reallocation by a Dominant Firm

When a firm acquires rival firms in one market, and moves their capacity to another market, should antitrust authorities be concerned? We address this question by studying a multi-stage game.

Informative Advertising and Optimal Targeting in a Monopoly

This paper analyzes how the transition from mass to specialized advertising can affect the market outcomes.

The Diversity of R&D Consortia and Firm Behavior: Evidence from Japanese Data

An empirical analysis of Japanese government-sponsored R&D consortia involving 213 firms over 13 years shows that the diversity of a consortium is associated with greater R&D expenditure by pa

FOB or Uniform Delivered Prices: Strategic Choice and Welfare Effects

In spatial markets firms typically use either FOB (mill) or uniform delivered (UD) pricing. What competitive factors motivate this choice and what are the welfare implications of the choice?