Employing an endogenous quality choice model, we reconsider the effect on welfare of monopolistic third-degree price discrimination. We prove that price discrimination always enhances welfare, mainly because the quality improvement owing to price discrimination increases consumer surplus....

Taking a traditional approach, I show that by using the discrete adjustment system, the Cournot solution in a free entry oligopoly with increasing returns to scale is stable only when the number of firms is very small. We must pay attention to stability when using the free entry Cournot...

This paper investigates the effects of exclusive territories in the presence of upstream competition. We consider the vertical dealings among two upstream firms and four downstream firms and find that exclusive territories may be more beneficial for consumers and more harmful for producers than...