Issue 2

December 1990

Product Differentiation and Profitability: An Asymmetric Model

The purpose of this paper is to develop a model of product differentiation in which there is an asymmetry, namely that some customers are easier to serve than others.

Bertrand-Edgeworth Equilibria When Firms Avoid Turning Customers Away

This paper provides a simple solution to the problem of non-existence of pure-strategy equilibria in Bertrand-Edgeworth models with strictly convex costs.

Collusion in Dynamic Oligopolies in the Presence of Entry Threats

This paper considers a generalized oligopoly supergame, where an endogenous entry decision is included.

Market Structure and Worker Quality

It is frequently asserted, although never directly tested, that firms in more monopolistic industries hire better qualified workers. This paper presents two new results.

Competing Networks and Proprietary Standards: The Case of Quadraphonic Sound

Quadraphonic audio systems failed to replace stereo in the 1970s, despite backing from all the major manufacturers and recording houses.

Sharing Productive Knowledge in Internally Financed R & D Contests

We examine the optimal design of two-stage research and development (R & D) joint ventures.

The Dampening-of-Competition Effect of Exclusive Dealing

Using the dampening-of-competition approach to understanding vertical relationships (Rey and Stiglitz [1988], Bonnano and Vickers [1988], Lin [1988], etc.), this paper shows that, in the absence of in