Some recent literature on "vertical product differentiation" has d eveloped the idea that if the nature of technology and tastes in some industry take a certain form, then the industry must necessarily be "concentrated" and must remain so, no matter how large the economy becomes. The present...

In the economic modeling of bargaining, outside options have often been naively treated by taking them as the disagreement payoffs in an application of the Nash bargaining solution. This paper contrasts this method of predicting outcomes with that obtained from an analysis of optimal strategic...