Most-favored-nation (MFN) clauses in wholesale contracts have been the subject of recent controversy and renewed antitrust scrutiny. We demonstrate that an environment where MFN clauses may be adopted share equivalence properties with an environment where a monopolist sells a good exhibiting...

We study pricing strategies of competing firms that sell heterogeneous products to consumers in a social network. Goods are substitutes and there are network externalities between neighboring consumers. We show that there exists a unique subgame-perfect equilibrium where, in the first stage,...

This paper analyzes optimal product lines when consumers differ both in their taste for quality and in their desire for social image. The market outcome features partial pooling and product differentiation that is not driven by heterogeneous valuations for quality but by image concerns. A...