In this paper a discrete choice model is suggested which generates unambiguously lower prices, if oligopolists discriminate by price. In a setting of two groups of consumers and two firms this is due to a different ranking of the elasticity of demand of the two groups by the two firms. Here,...

In this paper a discrete choice model is suggested which generates unambiguously lower prices, if oligopolists discriminate by price. In a setting of two groups of consumers and two firms this is due to a different ranking of the elasticity of demand of the two groups by the two firms. Here,...

We develop a model of search among substitutes for the best combination of commodity variant and price, in which the structure of search costs is manipulable by the suppliers of these variants, e.g., by joining an existing market or opening a new one. We analyze the subgame-perfect equilibria...