Summary On a product market costumers’ search costs bring about a kink in a firm’s conjectural demand curve. As a consequence different unemployment regimes are derived from different kinds of labor markets. Then the effects of demand policy are analyzed. In case of static expectations...

Summary This paper is about conscious parallelism in a duopoly with differentiated products. Conscious parallelism is modelled by a “policy of fixed relative prices” (frp) i. e. starting from a competitive equilibrium both duopolists vary prices by the same percentage. This price increasing...