We study price discrimination in a market in which two firms engage in Bertrand competition. Some consumers are … contested by both firms, and other consumers are “captive” to one of the firms. The market can be divided into segments, which … involves dividing the market into “nested” markets, where exactly one firm may have captive consumers …

We study a linear interaction model with asymmetric information. We first characterize the linear Bayes Nash … information structure.We use our results in a variety of applications: (i) we study the connections between incomplete information … and strategic interaction, (ii) we explain to what extent payoff environment and information structure of a economy are …