This paper takes the new approach of using a copula to characterize consumer preferences in a discrete choice model of product differentiation, and applies it to the economics of monopoly and duopoly. The comparative statics of demand strength and preference diversity, both properties of the...

A vertically integrated firm has the incentive and ability to use exclusive contracts to foreclose an equally efficient upstream competitor and to effect a cartelization of the downstream industry. Its ability to do so may be limited when downstream firms are heterogeneous and supply contracts...

The paper surveys the economics literature on the competitive effects of vertical integration, assesses the relevance of the economics literature for several recent regulatory and antitrust cases, and defends a structured rule of reason approach to evaluating the competitive effects.

The paper considers an industry featuring agency problems between outside investors and entrepreneurs who manage the firms comprising the industry. In a range of circumstances, industry scale is independent of product market structure, and is determined solely by the amount of equity financing...