In the context of a vertically differentiated duopoly model with endogenous quality choice, we analyzes the welfare … detrimental for consumer surplus, may increase or decrease social welfare and firms' profits. In particular, when the overlapping … level of industry profit and, therefore, a higher level of overall welfare. …

We study a simultaneous move game of targeted advertising and pricing in a market with various consumer segments. In … advertising, they can obtain positive profits. In equilibrium firms price very aggressively when they address the most profitable …

Letters, 124: 122-126) show that in a vertically related market Cournot competition yields higher social welfare compared to … of input they purchase. We show that the welfare ranking may be reversed once we introduce a nonnegativity constraint on …