In this paper we argue that two important causes of welfare losses in oligopolistic markets have been neglected. We show that in models where location is endogenous, welfare losses arising from wrong locations or from lack of market coverage may be substantial despite firms competing in prices....

In the context of a vertically differentiated duopoly model with endogenous quality choice, we analyzes the welfare effect of overlapping ownership when the market is fully covered. The results show that overlapping ownership, while detrimental for consumer surplus, may increase or decrease...

Exit, Voice, and Loyalty (A.O. Hirschman 1970) is a theoretical concept derived from the work of Albert O. Hirschman (1970) which is focused on two essential options in organizatios and products decline, being exit and voice.The basis concept is as follows: members of an organization, whether...

We analyze the welfare effects of “parity” rules that force a vertically-integrated input monopolist (VIM) to treat downstream affiliates and competitors alike in terms of price and quality. We find that input-quality parity can lower social welfare when input pricing is unregulated. In...