I model manufacturers competing through a retailer. I model two types of advertising that each firm can engage in: advertising that increases product differentiation and advertising that increases (possibly perceived) value of the product. While the two types of advertising result in...

We show that in many applied economic models, it is possible to reduce the dimensionality of the space of actions to what we call sufficient decisions. We find that for monopoly and oligopoly in multi-sided markets and multi-product markets, the market equilibrium can be transformed into an...

This article extends antitrust analysis to two-sided markets in which a virtual monopolist competes with local bricks-and-mortar dealers. The discussion examines the market power of an Internet market maker as well as an Internet matchmaker. The analysis shows that equilibrium in a two-sided...