We study imperfect and monopolistic competition with asymmetric preferences over a variety of goods provided by heterogeneous firms. We show how to compute equilibria through the Morishima elasticities of substitution. Simple pricing rules and closed-form solutions emerge under monopolistic...

We study monopolistic competition with asymmetric preferences over a variety of goods provided by heterogeneous firms and show how to compute equilibria (which approximate Cournot and Bertrand equilibria when market shares are negligible) through the Morishima measures of substitution. Further...

A methodology is proposed to estimate structural models of product line competition. This methodology enables researchers to estimate demand systems accounting for the endogeneity of the mix of products available in each market, an issue which is typically ignored in the empirical literature. In...

How should firms optimally choose prices and promotional strategies and how should they position their products when consumers are "relative thinkers"? We provide answers in a model that extends the seminal contributions of Varian (1980) and Narasimhan (1988) and derive both managerial...

This paper analyzes two aspects of the standard sequential consumer search model: (1) the role of the consumer's ex ante information structure on market outcomes and search behavior; and (2) the effect of imperfect recall on market outcomes and search behavior. Simulated equilibria are generated...

This survey aims to provide an overview of recent developments in the industrial organization literature that explores the behavior of profit-maximizing firms facing consumers with reference-dependent preferences and loss aversion. We discuss the implications of loss aversion on the practice of...

The Federal Credit CARD Act of 2009 made important changes to the credit card market, including a requirement that penalty fees be reasonable and proportional to the borrower's violation. In interpreting "reasonable and proportional" an understanding of the nature of penalty fees is essential....

Marketing research has traditionally focused on centralized brand-extension strategies where a brand expands its product offerings by controlling the design, production, marketing and sales of new products `in-house'. However, luxury brands frequently use `brand licensing' as a decentralized...

In many markets, such as video streaming or information services, a consumer may purchase multiple competing products or services. The existing theoretical literature typically assumes that each consumer can buy only one product. This paper explicitly models the consumer's multi-purchase...

This study reveals two different rationales for consumer surplus-enhancing collusion. The first model considers two competitive firms in the final product market, each with one essential patent necessary for production. The equilibrium price under collusion is lower than the price under...