I study a model of oligopolistic competition in which consumers search for prices, but have no idea about the underlying price distribution. Consumers' behaviour satisfies four consistency requirements such that beliefs about the underlying distribution maximize Shannon entropy. I derive the...

We examine the interplay of imperfect competition and incomplete information in the context of price competition among firms producing horizontally- and vertically-differentiated substitute products. We find that incomplete information about vertical quality (e.g., consumer satisfaction), which...

This paper develops a model with multiple market locations in which the quality of intangible assets of firms, provided by management, determines the firms. performance. Despite an ex ante symmetry of potential entrants, the equilibrium assignment of heterogeneous managerial skills to firms...

We provide a methodology to study the role of market distortions on the emergence of indeterminacy and bifurcations. Most of the specific market imperfections considered in the related literature are particular cases of our framework. Comparing them we obtain several equivalence results in terms...

This paper develops a tractable general equilibrium model with multiple market locations in which the interplay between product markets and the market for managerial skills determines both the size distribution of firms and top wage income shares. Despite ex ante symmetry of potential entrants,...