A monopolist who originally charges a uniform price across all markets may switch to discriminatory pricing upon the entry of a competitor. As a result, intensified competition may lead to more dispersed prices as well as higher prices for some or all consumers.

The profitability of horizontal mergers is investigated in a situation in which firms face a production shock and therefore are uncertain about their future costs. I show that, due to production rationalization, small-scale mergers can be profitable if the uncertainty is large. The efficiency...

This paper examines the choice of commercial breaks by a television network in a monopoly setup. It is assumed that viewers dislike commercials, while the network seeks to maximize the total audience for these commercials through its choice of the number, length, and timing of commercial breaks....

A model of heterogeneous firms with multiple products and two production factors (labor and capital) is used to study how trade liberalization affects firms' choices through both product and factor markets. Trade liberalization is shown to always redistribute capital toward more efficient firms...

We investigate the R&D portfolio choices of multiproduct firms. When a firm increases cost-reducing R&D investment in a given product, its rivals will modify their entire R&D portfolios by reducing R&D investments in that particular product and increasing R&D investments in other competing...

Due to the quick advancement of science and technology, the services sector which has a high content of knowledge and technology has experienced globally expeditious development in the past decade. Development in general and the growth of Knowledge Intensive Business Services (KIBS) such as...