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In this paper, we tackle the dilemma of pruning versus proliferation in a vertically differentiated oligopoly under the …
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. In a homogeneous oligopoly, under standard regularity conditions, we prove that Cournot-Nash emerges both under (i) price … competition and Cournot conjectures; and (ii) supply function competition with ex post market clearing. We demonstrate both …
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We develop a two-stage game in which competing airlines first choose the networks of markets to serve in the first stage before competing in price in the second stage. Spillovers in entry decisions across markets are allowed, which accrue on the demand, marginal cost, and fixed cost sides. We...
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