We consider a model of daily newspapers' competition to test the validity of the so called quot;theory of the circulation spiral.quot; According to it,the interaction between the newspapers and the advertising markets drives the newspaper with the smaller readership into a vicious circle,...

This paper contributes to the theoretical analysis of proportional import restraints, that is, restraints that are defined in terms of market shares (e.g., 10% of the market) rather than in terms of volume of imports (e.g., 200,000 automobiles per year). We show that an increase in the market...