This paper investigates the strategic impact of organizational design on product market competition. In a duopoly model of horizontal and vertical product differentiation, each firm's manager can impose a product location, or delegate responsibility to select product location to his subordinate....

In a model of managerial delegation in a duopoly with asymmetric costs, I show that an increase in the intensity of market competition (product differentiation) increases the absolute weight placed on rival's profit (relative performance) in the managerial compensation scheme for both firms and...

The unprecedented access of firms to consumer level data facilitates more precisely targeted individual pricing. We study the incentives of a data broker to sell data about a segment of the market to three competing firms. The segment only includes a share of the consumers in the market around...

The present paper is concerned with providing a core model to address the issue of firms simultaneously competing in both prices and quantities (capacity levels) within a simple duopoly market setting where products are asymmetrically differentiated by endogenous quality location. A three-stage...

In the presence of network externalities, we compare the stability of collusion under Bertrand and Cournot duopoly with differentiated products. Contrast to previous studies, we show that (i) firms have stronger incentive to collude under Bertrand competition than under Cournot competition in...

There is growing evidence that low-quality customer service prevails in the mobile telecommunications industry. In this paper we provide theoretical support to this empirical observation by using simple game theoretical models where inefficient low-quality service levels are part of an...

We examine the effects of mobile termination rate regulation in asymmetric oligopolies. We do this by extending existing models of asymmetric duopoly and symmetric oligopoly where consumer expectations about market shares are passive. We first calibrate product differentiation parameters using...

We revisit the relationships between competition and market outcomes in a Stackelberg oligopoly. Consider a differentiated oligopolistic market consisting of n leaders with different efficiencies and m followers. We show that the efficient leader's profit may increase with the number of...

We revisit the relationships between competition and various market outcomes in a differentiated Cournot oligopoly. Consider an oligopolistic market with two differentiated varieties, where each firm sells one of the varieties. We show that social welfare and consumer surplus can decrease with...

The impacts of the Lifeline subsidy on high-speed Internet access, prices and welfare are evaluated. Counterfactuals from a differentiated-product model of competition between cable and telephone firms show the $9.25 subsidy is a positive incentive but the share of low-income households in the...