This paper studies how selling constraints, which refer to the inability of firms to attend to all the buyers who want to inspect their products, affect the equilibrium price and social welfare. We show that the price that maximizes social welfare is greater than the marginal cost. This is...

We investigate a market in which experts have a moral hazard problem because they need to invest in costly but unobservable effort to identify consumer problems. Experts have either high or low qualification and can invest either high or low effort in their diagnosis. High skilled experts are...

We propose a framework of utility competition (UC), and we provide the intuition why price competition (PC), quantity competition (QC) and UC differ, and prove it by using a nonlinear demand system. If the network externality is positive, then PC is the most efficient with the lowest equilibrium...

The first part of the paper reviews an analytical method for inverting demand in price competition to find the corresponding inverse demand under quantity competition. The method yields a simple function relating demand elasticities with inverse demand elasticities. The second part of the paper...

We examine how revenue-sharing and profit-sharing stakes affect price competition intensity under duopoly. Our analysis builds on the price competition framework introduced by Varian (1980) and accounts for fundamental asymmetries in terms of cost and consumer loyalty. A stake exists when a firm...

This paper analyses the quality provision of interrelated market firms under different market structures both theoretically and empirically.A theoretical model is built,where a media firm offers newspapers in a primary market and advertising space in the secondary market.Furthermore,the media...

Firms in traditional markets often compete in output à la Cournot. In this paper, we consider Cournot competition between platforms in a two-sided market. We find that the markup and markdown terms are distorted toward zero for greater levels of platform competition and for greater levels of...

This paper analyses how different types of access regulation to next generation networks affect investments and consumer welfare. The model consists of an investment stage with uncertain returns and subsequent quantity competition. The access price is a function of investment costs and the...

This paper analyses how different types of access regulation to next generation networks affect investments and consumer welfare. The model consists of an investment stage with uncertain returns and subsequent quantity competition. The access price is a function of investment costs and the...