We analyze price competition between two brands. Buyers consist of switchers and two segments of customers with limited brand loyalty. We identify a unique symmetric mixed-strategy price equilibrium and find that competition is most relaxed when there exists some switchers.

The spectrum for third generation (3G) mobile communications for the German market was alloted to operators by means of an auction. This resulted in a highly competitive outcome: six operators were given rights to provide 3G services. Government revenues from this auction were a staggering EUR...

The Riegle-Neal Act in the US and the Economic and Monetary Union in Europe are recent initiatives to stimulate financial integration.These initiatives allow new entrants to "poach" the incumbents' clients by offering them attractive loan offers.We show that these deregulations may be...

We show that competing firms relax overall competition by lowering future barriers to entry.We illustrate our findings in a two-period model with adverse selection where banks strategically commit to disclose borrower information.By doing this, they invite rivals to enter their market.Disclosure...

There is growing evidence that low-quality customer service prevails in the mobile telecommunications industry. In this paper we provide theoretical support to this empirical observation by using simple game theoretical models where inefficient low-quality service levels are part of an...

Se realiza un análisis de los determinantes del incumbent failure que surgen de la interdependencia competitiva. Se utiliza herramientas proporcionadas por la teoría de juegos (backward induction y el análisis de estrategias conjuntas en juegos de señalización) para determinar los...

The Iranian electricity industry has been restructured following the global experiences. The main objective of restructuring is transition from natural monopoly towards competition in order to improve efficiency. Currently, the Iranian electricity market is performing as imperfect competition...

No abstract.