Network-effects may lead to imperfect competition and may therefore make a Strategie trade policy attractive for a country exporting network goods. I analyze the implications of Strategie trade policy in a model of horizontal produetdifferentiation with network effects. Within this framework,...

We study the evolution of prices set by duopolists who are uncertain about the perceived degree of product differentiation. Customers sometimes view the products as close substitutes, sometimes as highly differentiated. As the informativeness of the quantities sold increases with the price...

Wage Dispersion and Efficiency. It is often assumed that markets generate efficient allocations, but these are not necessarily fair. The widening of wage differentials that is currently observed is interpreted in this manner: Skill-biased technological progress increases demand for skilled work...

Computer-owners combine complementary goods to a computer-system. They exchange data with others and between different applications. These interdependencies lead to three different network effects, which are explained in the framework of Hotelling models. In the framework of a one-dimensional...