The present paper develops a two-period, simple model of inter- bank competition based on the idea that banks can partially control the behaviour of borrowers. The control effort by one bank over its customers is not observable by competitor banks. It is shown that the equilibrium behaviour of...

"We extend the theory of advertising as a quality signal" "using a model where an entrant can choose to advertise by comparing its product to that of an established incumbent. Comparative advertising, comparing quality of one's own product to that of a rival's, empowers the latter to file for...

The literature so far has analyzed the effects of Minimum Quality Standards (MQS) in oligopoly, using models of pure vertical differentiation, with only two firms, and perfect information. We consider products that are differentiated horizontally and vertically, with imperfect consumers'...

In the present note we study how the strategic considerations in a duopoly affect the choice by the two firms whether or not to internalize production of an intermediate input. The failure to minimize costs is shown to be a possible outcome of a two-stage game representing the firms' decision...

We consider a model of daily newspapers' competition to test the validity of the so called "theory of the circulation spiral". According to it, the interaction between the newspapers and the advertising markets drives the newspaper with the smaller readership into a vicious circle, finally...

We study firms' incentives to transfer knowledge about production technology to a rival in a Cournot duopoly. In a setting where two technologies are available, a technology is characterized by its associated cost function and no single technology is strictly superior to the other. A firm has...

This paper aims to identify the cost characteristics of exiting firms whenever firms are playing an infinite horizon supergame with time-invariant cost and demand functions. With more than two firms, the problem of which firms exit is quite similar to a coalition formation one. Solving this...

Alliances between competitors in which established firms provide access to proprietary resources-for example, their distribution channels-are important business practices. We analyze a market where an established firm, firm A, produces a product of well-known quality, and a firm with an unknown...