We analyze how product differentiation influences firms' choice between exporting and foreign direct investment. When product specifications are determined endogenously, we show that there is no symmetric solution to the product specification subgame. The cost disadvantage of an exporting firm...

This paper provides a rich assessment of the demand characteristics for movie theatre attendance in two major metropolitan markets and provides strong support for the importance of spatial characteristics in empirical demand analysis. We provide evidence of the usual competitive effect of...

We examine market structure and optimal commodity taxation in a world in which firms produce differentiated products and can exert some degree of market power. Building on Kay and Keen (1983), we model two forms of product technologies, two forms of market entry structures, and two forms of...

Imperfectly competitive markets, such as those involving spatial separation of producers and consumers are characterized by interactions between competing firms. Actions call forth reactions and the possible reactions form an important part of the information set that should be used to determine...