Using copulas to model the stochastic dependence of values, this paper establishes new general conditions on the profitability of product bundling. A multiproduct monopolist generally achieves higher profit from mixed bundling than from separate selling if consumer values for two products are...

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 spokes model of nonlocalized spatial competition provides a new analytical tool for differentiated oligopoly and a representation of spatial monopolistic competition. At the unique symmetric equilibrium of the spokes model, an increase in the number of firms leads to lower prices when...