This paper develops an empirical model of online airfare determinants to inspect the impact of the entry of a low-cost carrier (LCC). In particular, we investigate whether the increased competition from a recently established LCC induces major carriers to respond in two competitive dimensions:...

We analyze the strategic behavior of firms when demand is determined by a rule of thumb behavior of consumers. We assume consumer dynamics where individual consumers follow simple behavioral decision rules governed by imitation and habit as suggested in consumer research. On this basis, we...

A general theoretical and empirical framework is developed for assessing the potential of a vertically integrated firm to foreclose downstream competitors. Using this framework a policymaker may also evaluate the empirical welfare effects from a vertically integrated firm raising rivals' costs....

We investigate firms' re-manufacturing strategies in the case of a Cournot duopoly. On one hand, re-manufactured products cannibalize sales of new products by the same firm and hurt its profits. On the other, re-manufacturing can be a profitable marketing strategy to target different customer...

A model of different species competing for the same environment is presented, and possible explanations of peaceful coexistence or rather internecine conflicts are consequently derived. By means of a Lotka-Volterra dynamic system we describe the evolution of two populations (bees and locusts)...