This paper builds a theory of endogenous role distribution (leader, follower, and Nash player) and of endogenous choice for the type of competition strategy (price and quantity) in a product differentiated duopoly model. We examine an extended game by adding a pre-play stage in which duopoly...

This paper examines the effects of obtaining a strategic advantage of becoming the leader in the market on insiders’ incentives to merge and consumer welfare. We show that being the market leader is privately profitable for the merging insiders. We also show that the leading merger would...

In recent years models with a nested constant elasticity of substitution utility function and heterogeneous firms involved in some form of competition have become popular in the international trade literature. This paper considers one particular model of this class — with firms competing in...

This note provides an alternative construction to Blume (2003) of equilibria in the standard model of Bertrand competition with homogeneous products and different marginal costs that achieve the conventional outcome. In addition, I provide a means to select one of these equilibria.

We provide supporting evidence from the laboratory for the Nash predictions of the homogeneous-good Bertrand model under asymmetric constant unit costs.

It is usually believed that the presence of a labour union makes firms as well as consumers worse off by increasing wages compared to the situation with no labour union. We show that the presence of a labour union may increase the incentive for entry and may also make consumers better off...

This paper proposes a new empirical framework to measure banking competition. The method developed delivers a robust monotonic relationship between the measure and toughness of price competition. Furthermore, the proposed competition measure can be readily applied to other industries.

This paper analyzes the unilateral choices of application compatibility by platforms and the endogenous affiliations of two different groups (content providers and users). We find a novel result that for both platforms to unilaterally choose application compatibility is not an equilibrium unless...

This paper extends a discrete-choice model of differentiated product demand to consider consumer heterogeneity in dynamic games. Our approach applies to games involving both multi-product firms and static price competition.

This paper investigates the impacts of competition structures on firms’ incentives for adopting strategic environmental corporate social responsibility (ECSR) certified by a Non-Governmental Organization. We show that, to induce firms to adopt certified ECSR, the certifier will set a standard...