We consider the efficiency of Cournot and Bertrand equilibria in a duopoly with substitutable goods where firms invest … in process R&D. Under Cournot competition firms always invest more in R&D than under Bertrand competition. More … importantly, Cournot competition yields lower prices than Bertrand competition when the R&D production process is efficient, when …

This paper sheds light on a recent empirical controversy about the effect of competition on price discrimination in … sales that is more skewed towards low prices. We show that whether competition has a positive or a negative effect on the …

We assess the influence of competition and capital regulation on the stability of the banking system. We particularly … show that competition improves the monitoring incentives of better quality banks and deteriorates the incentives of lower … quality banks; and that precisely for those lower quality banks competition typically compromises the effectiveness of capital …

competition, akin to the competition in wholesale electricity markets. An acute form of market power may arise if a supplier is …