This paper uses a vertical product differentiation model to discuss the influences caused by counterfeiting on prices and outputs of original products, consumer surplus and social welfare. We also explore the impact of the government’s enforcement on counterfeiting and social welfare. We find...

This paper examines the optimality of intertemporal price discrimination when network externality effects are present in the consumption of a durable good. We conduct our study in two settings. In a model with two household types, utilities are dependent on the cumulative proportion of...