Issue 3

September 1993

Product Line Rivalry with Brand Differentiation

Competition with product rivalry is examined in a model where products are differentiated by both quality and brand name. With no commitment, firms produce a full product line.

Monopoly Pricing of Capacity Usage Under Asymmetric Information

The design of monopoly pricing strategies is examined in a general framework with an unknown population distribution of consumer characteristics and downward-sloping, multi-unit consumer demand.

Windfall Profits and Vertical Relationships: Who Gained in the Japanese Auto Industry from VERs?

This paper employs an event study to analyze the effect of the 1981 voluntary export restraint (VER) agreements on profits in the Japanese automobile industry.

Market Power, Information and Efficiency: The Link Between Solutions and Equilibrium Distortions

The extent of competition generally determines both the location and the extent of distortions due to information asymmetries.

The Distribution of Price Changes in Oligopoly

Econometric analysis of the skew of price change distributions for an eighty industry sample over an eleven year period indicates that the distributions are less skewed in times of rapidly changing pr

The Akzo Decision: A Case of Predatory Pricing?

In December 1985, a fine was imposed on the Dutch multinational AKZO for predatory abuse of a dominant position.

A Note on Consumer Search, Firm Location Choice, and Welfare

Although geographical concentrations of retail firms facilitate search, such concentrations also increase wasteful travel by consumers.