[eng] Spatial competition and distortuns of localization. Under incomplete information. . We study a model of spatial duopoly competition with sequential entry on a segment in the choice of locations (stage 1 of the game) and then simultaneous competition in delivery prices (stage 2). The second...

It is shown that the presence of informed buyers is necessary but not always sufficient for producers to use prices as signals of product quality. A sufficiently high fraction of informed buyers eliminates the lemons problem. A small fraction of informed buyers mitigates the lemons problem,...

We investigate second-best optimal taxation of the polluting variety of a product in a Bertrand duopoly with differentiated varieties. The analysis provides novel insight on a useful social function of environmental regulation. Besides internalizing the environmental externality, the taxation of...