We examine the interaction between firm prominence and consumer confusion in a duopoly model of price-frame competition. Both frame complexity and frame differentiation are sources of consumer confusion and firms make prominence investments that determine their shares of confused consumers....

This paper introduces price-dependent individual demand into the circular city model of product differentiation. We show that for any finite number of firms, an unique symmetric price equilibrium exists provided that demand functions are not “too” convex. As in the case of unit demand, the...

This paper proposes a model for a certification market with an imperfect testing technology. Such a technology only assures that whenever two products are tested the higher quality product is more likely to pass than the lower quality one. When only one certifier with such testing technology is...