We investigate the impact of vertical price restraints on the free-entry equilibrium and its welfare properties in a vertically related market where manufacturer-retailer hierarchies compete under asymmetric information. We compare the legal regimes of laissez-faire and ban on resale price...

In a Cournot industry where firms are privately informed about their marginal costs, raising entry barriers (i.e., imposing strictly positive, but not too large, entry costs) increases expected output, entrants' profits, total welfare, and might benefit consumers. Under Bayes-Cournot...

In this paper we investigate a two-period Bertrand-Edgeworth oligopoly model in which two capacity-constrained firms (incumbents) compete facing future demand uncertainty as well as uncertainty about entry. These firms must choose between pricing low and secure sales in the first period or,...