I present a strategic model of competition in price and availability in which demand is uncertain and consumers choose where to shop given firms' observable prices and their expectations of firms' unobservable inventories. In both a single-period Cournot model (inventories are chosen first) and...

In the first essay, I analyze a symmetric duopolistic market where each firm's choice regarding certain quality attributes such as the environmental friendliness of its product is its own private information. I find that the extent of horizontal differentiation between firms plays a crucial role...