We introduce endogenous political parties into the Hotelling-Downs voting framework to model the selection of candidates. First, activists choose which party to join, if at all. Second, party members select a champion for the general election. Third, the electorate median voter determines the...

We find the Nash equilibria for monotone n-player symmetric games where each player chooses whether to participate. Examples include market entry games, coordination games, and the bar-room game depicted in the movie 'A Beautiful Mind'. The symmetric Nash equilibrium involves excessive...

We describe firm pricing when consumers follow simple reservation price rules. In stark contrast to other models in the literature, this approach yields price dispersion in pure strategies even when firms have the same marginal costs. At the equilibrium, lower price firms earn higher profits....

Empirical evidence suggests that most advertisements contain little direct information. Many do not mention prices. We analyse a monopoly firm’s choice of advertising content and the information disclosed to consumers. The firm advertises only product information, price information, or both;...

Product heterogeneity is introduced into the context of spatial pri ce discrimination. Many of the strong properties of the standard homogeneous goods case (which attains as a limit case here) are shown to no longer be valid. In particular, the social optimum is no longer sustainable as a market...

This paper proves the existence of a symmetric equilibrium with multiproduct firms using a nested logit model of demand. The demand model is parameterized by two variables that characterize different dimensions of preference for variety. These reflect intragroup heterogeneity and intergroup...

This paper concerns the interaction between a firm and a trade union in determining employment, wages, and the capital stock. The authors take as given a variant of the monopoly trade union model as expounded by A. J. Oswald (1982), where the trade union sets the wage, and to this they add the...

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....

The authors examine whether oligopolistic autarkic industries operating in two different countries would gain from the opening of trade. They analyze a wide range of behavioral assumptions (as parameterized by conjectural variations) and a homogeneous products oligopoly for a large class of...

Consumer arbitrage affects international pricing in several ways. If all consumers face the same arbitrage costs, a monopolists profit increases with arbitrage costs, and world welfare declines with them (if output does not rise). If arbitrage costs differ across consumers, a monopolist may sell...