This paper considers the production of durable goods that deteriorate at a constant percentage rate under conditions of competitive and monopoly equilibrium. A perfect market in used units of the good is assumed, as is constant returns to scale in production. It is shown that a monopolist will...

Salant's (1976) model of cartelized resource markets with competitive fringe producers predicts an evolution of prices that lies between the Hotelling predictions for monopoly and competition. The price trajectory Salant derives is the best the cartel can enforce against competitive behavior....

This article is mainly concerned with Walter Oi's Disneyland problem: pricing a fixed input (admission to the park or Polaroid cameras) and a variable input (individual rides or Polaroid film) to maximize profit, though profit-constrained welfare maximization is also treated. The structure of...

This paper presents an analysis of the ready-to-eat breakfast cereal industry based on and related to the current antitrust case involving its leading producers. A spatial competition comparison framework is employed, with brands assumed relatively immobile. It is argued that the industry's...

Airline regulation is assumed to fix fares and the number of competitors. Noncooperative schedule determination in a single regulated market served by a small number of carriers is analyzed. Comparative static effects of changes in cost and demand conditions, regulated fares, and numbers of...

This note presents a simple model of the determination of the cost of distributing a public utility service to customers spread over a single urban area. Total distribution cost depends on the cost of transmitting services and on the spatial pattern of demand. Everywhere decreasing average cost...