Cost synergies are an explicitly recognized justification for a two-firm merger, and empirical techniques are now widely used to assess the impact of cost-reducing mergers on prices and welfare in the post-merger market. We show that if the merger occurs in a vertically product differentiated...

This paper analyzes (1) the information required by competitive firms to solve price conjectures for differentiated goods that are not currently produced and (2) the feasibility of competitive firms acquiring this information. Products are differentiated according to the Gorman-Lancasterian...

In this paper we analyze price competition between firms established in different countries when demand is sensitive to national biases. The intensity of this bias varies across consumers. In this context, trade arises because of the dispersion of consumers' perception of the foreign good; when...

In this paper we develop a North-South trade model in which the South produces food and the North produces both food and a high-tech good. Food production is undertaken by unskilled workers, while the high-tech product is made only by horizontally differentiated skilled workers. Owing to the...