We study the enforcement of competition policy against collusion under Leniency Programs, which give reduced fines to firms revealing information to the Antitrust Authority. Such programs give firms an incentive to break collusion, but may also have a pro-collusive effect, since they decrease...

There exists a continuum of prices between Bertrand and joint-profit maximization prices which can be interpreted as the outcome of a two-stage game where firms first invest to increase product differentiation and then compete in prices. The lower the costs of differentiating their products from...

In a world with two countries which differ in size, we study the impact of (the speed of) trade liberalization on firms' profits and total welfare of the countries involved. Firms correctly anticipate the pace of trade liberalization and take it into account when deciding on their product...

I show that an advertising ban is more likely to increase--rather than decrease--total consumption when advertising does not bring about a large expansion of market demand at given prices and when it increases product differentiation (thus allowing firms to command higher prices). In this case,...