analysis is conducted within the spatial model of nonlocalized competition proposed by Chen and Riordan (2006). It turns out …, product diversity is lower than under monopolistic competition. Nevertheless, the number of varieties can still be socially … product) firms then product diversity is higher than under monopolistic competition. Moreover, the incumbent firm is unable to …

pricing, introductory offers, and price wars. Such 'competition for the market' or 'life-cycle competition' can adequately … replace ordinary compatible competition, and can even be fiercer than compatible competition by weakening differentiation …. More often, however, incompatible competition not only involves direct efficiency losses but also softens competition and …

I study Cournot competition under incomplete information about demand while assuming that market price must be non … of the paper are relevant also for price competition and for uncertainty about, e.g., cost or the number of firms, and …

microfoundations, the welfare consequences of rent seeking can be studied. In particular, I show that competition among rent seekers …

Competition has been modelled in economic literature in a number of ways. What do these different parameterizations of … competition have in common? For instance, it turns out that it is not always the case that a rise in competition reduces price … cost margins, industry wide profits or concentration. All parameterizations of competition, considered here, have two …

This Paper introduces a new way to measure competition based on firms' profits. Within a general model, we derive … conditions under which this measure is monotone in competition, where competition can be intensified both through a fall in entry … competition. …

The Profit Elasticity (PE) is a new competition measure introduced in Boone (2008). So far, there was no direct proof … that this measure can identify regimes of competition empirically. This paper focuses on this issue using data of Genesove … and Mullin (1998) in which different regimes of competition are identified. We derive a version of PE suitable for this …

We introduce a new measure of competition: the elasticity of a firm's profits with respect to its cost level. A higher … value of this profit elasticity (PE) signals more intense competition. Using firm-level data we compare PE with the most … popular competition measures such as the price cost margin (PCM). We show that PE and PCM are highly correlated on average …