Two conflicting predictions have emerged regarding the effect of low-cost information on price. The first states that all Internet retailers will charge the same low price for mass produced goods. The second states that Internet retailers will differentiate to avoid intense price competition....

Do firms under relative payoffs maximizing (RPM) behavior always choose a strategy profile that results in tougher competition compared to firms under absolute payoffs maximizing (APM) behavior? In this paper we will address this issue through a simple model of symmetric oligopoly where firms...

Consumer cooperatives constitute a highly successful example of democratic forms of enterprises operating in developed countries. They are usually organized as medium and large-scale firms competing with pro fit-maximizing firms in retail industries. This paper models such situation as a mixed...

We examine a variant of Hotelling model where prices and locations are fixed but quality is a choice variable. We show that when sellers of a horizontally differentiated product are price-constrained and compete in quality, entry can lead to degradation of quality offered in equilibrium and...