The authors examine first mover advantages in a new product market with sequential entry. Effort is necessary to learn how to use new products and consumers are assumed to differ in their ability to expend such effort. The authors consider the intertemporal pricing strategy of the first entrant...

The authors consider the implications of game-theoretic models for the competitive or collusive nature of basing point pricing. In one-shot games, equilibrium price schedules do not generally conform to basing point pricing with unrestricted price competition. Nevertheless, basing point pricing...

The authors propose a specific characteristics framework in order to construct linkages between alternative approaches to modeling product differentiation. It is shown that a demand system that satisfies the gross substitutes property imposes specific requirements on the locations of products....