We study a Hotelling location game where media platforms compete with the same content in two separate markets. The findings show that media platforms may provide less differentiated content if the non-negativity constraint on prices is binding in at least one market. Moreover, content...

This note analyzes the impact of indirect network effects in emerging two-sided markets on prices, quantities, profits and market entry assuming market enlargement induced by indirect network effects. Only if indirect network effects are small, the conventional results of market entry apply,...

The paper proves that monopolistic price discrimination increases output under conditions of constant demand elasticity. The demonstration is simpler than that of Formby, Layson and Smith (1983)

We discuss the effects of bundling two goods offered by two symmetric firms. This situation requires the use of some sharing rule for the profits from the sales of the bundle. We show that the choice of this rule may have substantial effects on prices and profits – even if the possible...

One important issue in firms' governance is how to incentives so that activity centres can become more efficient. In this paper, we first introduce an agency contract where the salary of the manager of an activity centre that produces an intermediate product is dependent of its performance....

Existence problems have been pervasive in the economics literature on horizontal product differentiation. Adding a directional constraint to a standard Hotelling location model leads to a general result of non-existence of a pure strategy Nash equilibrium. Here we present a slightly different...

White (1996), Poyago-Theotoky (2001) and Myles (2002) prove that in the mixed oligopoly the optimal subsidy, equilibrium output level, all firms' profits and social welfare are identical irrespective of whether the public firm maximizes welfare or profit and moves simultaneously with private...

This paper develops a methodology to uncover consumer preferences from a discrete-choice demand model of product differentiation using plant-level data. When prices and quantities are observed, the appropriate strategy for estimating such model is well developed. However, most plant-level data...

There has been a dramatic increase in market concentration in the retail sector in the United States. Although it is typically assumed that standard supply-side forces of returns to scale are behind this trend, it is also possible that demand-side forces have played a role, i.e., that consumers...