When consumers differ in their attitude towards risk, price competi- tion between products of uncertain characteristics may be analyzed using address-models of product differentiation. These models provide a natural set-up for analyzing industries in which products of different reliability may...

In many european countries, public opinion seems to be worried about the effect of lower-wage country competition. In newspapers' articles, as well as in policy debates, the terms "social dumpingll becomes more and more popular. Trade unions, worried by the effect of what they call "unfair...

This paper uses a vertical differentiation duopoly framework to analyze firms’ relocation decisions, when the removal of trade barriers or restrictions on capital outflows or inflows (“globalization”) allows them to serve the domestic market through foreign plants in low-wage countries....

The present work analyses the effect of delegation on the market outcome when agents have private information about the firms' productivity. Two types of firms are considered: managerial firms (delegation) and entrepreneurial firms (no delegation). Due to the asymmetry of information managerial...