This paper investigates a retailer's decision to introduce a private label and asks how the retailer's access to a private label may affect the pricing of substitute national brands. We consider a model with two vertically differentiated national brand manufacturers that negotiate sequentially...

Received literature have shown that if competing networks are restricted to linear and uniform pricing, high access charges can facilitate collusion; a result that breaks down if we allow for non-linear and discriminatory pricing, however. In this paper we add unbalanced calling pattern to the...

The purpose of this article is to investigate the prospects for entry into an existing network in the telecommunication industry, and how public policy may promote a more competitive outcome. We apply a model that captures the fact that the incumbent has an installed base of loyal consumers,...

We consider a dynamic two-period model where two firms offer products that are differentiated a la Hotelling. Consumers purchase products in a first period, and in a second period consumers are locked-in to their first-period choice of producer with a switching cost. In the second period firms...

Providing health insurance involves a trade-off between the benefits from risk spreading and the costs due to moral hazard. Focusing on pharmaceuticals consumption, this paper examines theoretically whether reference pricing, requiring individuals to pay the price difference if, in this case,...

We examine the optimal regulation of agricultural markets when farmers have organized their activity in a cooperative which is the monopoly supplier of an upstream product and which competes with a single rival firm in selling a homogenous downstream product. The rival's marginal cost is private...

We study a setting where the opportunism or commitment problem identifed by Hart and Tirole (1990) may arise. An upstream monopolist may sell its product to two differentiated downstream retailers. Contract unobservability induces the manufacturer and each retailer to free-ride on margins earned...

Should governments allow parallel trade of pharmaceuticals? There is no clear-cut answer to this question, since parallel trade causes some public concerns. One is that prices might not decrease much in the home country because consumers are price insensitive as a result of medical insurance....

According to the new European telecom regulation, incumbent operators are required to provide access to such bottlenecks on fair, reasonable and non-discriminatory terms. We explore different interpretations of this general rule in a model in which the bottleneck can be used by external (to the...

We analyze the success of filtering as a solution to the spam problem when used alone or concurrently with sender and/or receiver pricing. We find that filters alone may exacerbate the spam problem if the spammer attempts to evade them by sending multiple variants of the message to each...