This paper analyzes price competition in a duopoly a la H. Hotelling in which perfectly and different types of imperfectly informed consumers coexist. If some consumers don't observe prices, the equilibrium price tends to rise above the full information level; moreover, price dispersion can...

Two versions of a vertical product differentiation model, one with fixed and the other with variable costs of quality, are analyzed to study how the hypotheses of price versus quantity competition affect equilibrium solutions. Product differentiation arises under all the scenarios considered,...

<heading id="h1" level="1" implicit="yes" format="display">Abstract</heading> We extend the literature on exclusive dealing by allowing the incumbent and the potential entrant to merge. This uncovers new effects. First, exclusive dealing can be used to improve the incumbent's bargaining position in the merger negotiation. Second, the incumbent finds it easier to...