When firms competitively price discriminate, best-response functions may exhibit either best-response symmetry (firms' ranking of strong and weak markets coincide) or best-response asymmetry (one firm's strong market is another firm's weak market). It has been shown in Corts (1998) and many...

One of the perennial questions in the switching cost literature is whether switching costs enhance or harm firms' profits. In this paper, we ask what types of switching costs, among those that are commonly observed, enhance firm's profits provided that firms can i) endogenously influence the...

This paper demonstrates that, under a set of weak assumptions, increased product differentiation will make it more difficult to sustain collusion when it is costly either to coordinate or to maintain collusion. These results contrast with the previous theoretical literature, which shows that, in...