The paper shows that the co-movements of optimal price and output in a monopolistic market can be a case of spurious correlation, price and quantity variations being affect by the degree of uncertainty in the consumers' incomes. The pattern of price and quantity changes depends on the shape of...

This paper contrasts the descriptive and normative properties of the New Keynesian general equilibrium models with those of other Keynesian paradigms, such as the neoclassical sintesi and the post Keynesian ones. We argue that the co-ordination failures, which are pivotal within the New...

The paper proves the existence of a subgame perfect Nash equilibrium in a vertically differentiated duopoly with uncovered market, for a large set of symmetric and asymmetric distributions of consumers, including, among others, all logconcave distributions. The proof relies on the 'income share...