In spatial competition firms are likely to be uncertain about demand when launching products either because of shifting demographics or of asymmetric information about preferences. This paper considers two types of prices: those set on prior information and flexible prices which adjust across...

In spatial competition iuml;B01rms are likely to be uncertain about consumer locations when launching products either because of shifting demographics or of asymmetric information about preferences. Realistically distributions of consumer locations should be allowed to vary over states and need...

We analyze vertical product differentiation in a model where a good's quality is unobservable to buyers before purchase, a continuum of quality levels is technologically feasible, and minimum quality is supplied under competitive conditions. After purchase the true quality of the good is...