We analyse the optimal pricing choice of an incumbent firm that sells a good with network externalities and is threatened by the entry of a higher quality variant. In the framework of a vertical differentiation model, we find a necessary and sufficient condition under which quality improvement...

We analyse firms’ incentives to provide two-way compatibility between two network goods with different intrinsic qualities. We study how the relative importance of vertical differentiation with respect to the network effect influences the price competition as well as the compatibility choice....

What is the effect of product market integration on the market equilibrium in the presence of international externalities in consumption ? To address this question, we set up a spatial two-country model and we find that the economic forces at work may have an ambiguous effect on prices.

We analyze the competition between two newspapers in a vertical differentiation model where the qualities of the journals are determined endogenously in the first stage of the game. We show that when the advertising revenues per reader increase there is a critical value above which the quality...

The present note first provides an alternative formulation of the Cancian, Bills and Bergström (1995) - problem which discards the non-existence difficulty and consequently allows to consider some extensions of the TV-newscast scheduling game. The extension we consider consists in assuming that...

This paper analyses price competition under product differentiation when goods are defined in a two dimensional characteristic space, and consumers do not know which firm sells which quality. Equilibrium prices consist of two additive terms, which balance consumers’ relative valuation of...

This paper investigates the role of output quality control in a multi agent setting with moral hazard. The principal is in charge of a team of agents who produce the output. The marketing of this output can be either a success or entail huge losses. At the time of marketing the product, the...

Dans cet article, nous considérons la mise en œuvre du critère de l'offre économiquement la plus avantageuse dans des marchés publics passés par voie électronique. Pour cela, nous analysons la procédure usuelle de l'enchère anglaise inversée avec bonus de qualité en considérant que...

L'agglomération spatiale des firmes est un phénomène largement débattu en économie géographique. Cet article propose une nouvelle explication à ce phénomène : les entreprises mettent en avant la localisation comme un moyen de signaler un bien nouveau. Accepter la concurrence en se...

In this paper, we provide a general model discussing the impact of non-homothetic preferences on the vertical comparative advantage of countries, i.e. the existence of demand-based determinants of the quality content of production and exports. We show that while average income positively impacts...