Frontmatter -- Contents -- Preface and Acknowledgments -- Symbols -- Part 1 . On Theories of Competition and Their Empirical Predictions -- Chapter 1. Introduction and Overview -- Chapter 2. On Theories of Competition -- Part 2. Empirical Evidence on Industrial and Corporate Pricing and...

We examine the effect of a capacity constraint on the profits of a durable goods monopoly (DGM) in a two-period model when rationing is efficient. For sufficiently high discount factors, output rises through time without a constraint and a constraint increases the DGM profits: it restricts...

Demand for oil is very price inelastic. Facing such demand, an extractive cartel induces the highest price that does not destroy its demand, unlike the conventional Hotelling analysis: the cartel tolerates ordinary substitutes to its oil but deters high-potential ones. Limit-pricing equilibria...