The goal of this paper is to study the frequency of new product introductions in monopoly markets where demand is subject to transitory saturation. We focus on those types of goods for which consumers purchase at most one unit of each variety, but repeat purchases in the same product category....

The paper offers an overview of the literature on bundling in the telecommunications sector and its application in the Spanish market. We argue that the use of bundling in the provision of services is associated to technological reasons. Therefore, there appears no need to regulate bundling...

The goal of this paper is to reexamine the optimal design and efficiency of loyalty rewards in markets for final consumption goods. While the literature has emphasized the role of loyalty rewards as endogenous switching costs (which distort the efficient allocation of consumers), in this paper I...

Transport costs in address models of differentiation are usually modeled as separable of the consumption commodity and with a parametric price. However, there are many sectors in an economy where such modeling is not satisfactory either because transportation is supplied under oligopolistic...

In this note we show that playsible differences in quality and production costs of durables and non-durables necessariloy lead to the sale of a product mix in the market over time.

In this paper we consider the spatial model by Anderson and Neven (1991) to study the subgame perfect equilibria without restricting the consumers' reservation price. New equilibria emerge where firms locate at disperse points in space. Also, at equilibrium, firms may monopolize some segments of...

While the theoretical industrial organization literature has long argued that excess capacity can be used to deter entry into markets, there is little empirical evidence that incumbent firms effectively behave in this way. Bagwell and Ramey (1996) propose a game with a specific sequence of moves...

We present a model of spatial competition where transport costs are dependent on the price the monopolist sets in the market. Several specifications of the transport costs are modeled. We find that, in contrast with a standard Hotelling model, the monoplist decides to cover all the market...

The goal of this paper is to study the role of multi-product firms in the market provision of product variety. The analysis is conducted using the spokes model of non-localized competition proposed by Chen and Riordan (2007). Firstly, we show that multi-product firms are at a competitive...