This paper explores how social interactions among consumers shape markets. In a two-country model, consumers meet and exchange information about the quality of the goods. As information spreads, the demands evolve, affecting the prices and quantities manufactured by profit-maximizing firms. We...

In this paper, we tackle the dilemma of pruning versus proliferation in a vertically differentiated oligopoly under the assumption that some firms collude and control both the range of variants for sale and their corresponding prices, likewise a multiproduct firm. We analyse whether pruning...

This paper develops a model of the daily newspaper industry in order to provide a tentative explanation for the rise of free newspapers. This explanation is based on the growth of net advertising revenues per reader, i.e. of the difference between advertising revenue per reader and unit printing...