In this paper we study a vertically differentiated duopoly market with a profit maximizing firm (private firm) and a total surplus maximizing firm (public firm). The technological conditions are assumed identical for both firms and are described by unit costs which are constant with respect to...

This paper surveys the main probabilistic discrete choice models used in economics and psychology. We first discuss the historical and epistemological foundations of these models. The two main families are considered: models with stochastic choice rule and stochastic utility models. A detailed...

A duopoly model encompassing both horizontal and vertical differentiation is analysed. We seek subgame perfect Nash equilibria in a game where firms choose, first, the horizontal (variety) and the vertical (quality) characteristics of their product and, then, compete in prices. We show that,...

Economic activities are unevenly distributed over space. Explaining this simple but widespread phenomenon is the main purpose of economic geography. The main reasons for the emergence of economic agglomerations are the following ones: (i) externalities in perfectly competitive markets; (ii)...