prices increase and consumer's surplus possibly decrease. We first derive the price and the consumer's surplus of a monopoly …

higher than the single-product monopoly price. While the market share effect of competition encourages a firm to charge less … than the monopoly price because a duopolist serves fewer consumers, the price sensitivity effect of competition motivates a … results in a higher or lower price compared to single-product monopoly. The analysis reveals that priceincreasing competition …