When consumers differ in their attitude towards risk, price competition between products of uncertain characteristics may be analyzed using address-models of product differentiation. These models provide a natural set-up for analyzing industries in which products of different reliability may...

We consider a market where consumers differ in risk aversion. Two firms sell products of uncertain quality. We characterize the Nash equilibriura in prices and show that, due to consumers' heterogeneity, less reliable products are likely to coexist with more reliable ones in equilibrium....

Cet article essaie d'évaluer, à travers un exemple, les effets en termes de bien-être de la libéralisation des échanges intra-industriels entre deux pays. Si il est vrai que la libéralisation des échanges accroît le bien être « mondial », sous certaines conditions un des deux pays...

One of the most usual claims in the debate on economic Integration is that trade liberalization and a fortiori free trade agreements are at the greater advantage of consumers of all countries. In this paper we show that this statement should be temperated if the countries differ considerably...