Limited Competition

Price Competition under Limited Comparability∗

This paper studies market competition when firms can influence consumers’ ability to compare market alternatives, through their choice of price “formats”. We introduce random graphs as a tool for modeling limited comparability of formats. Our main results concern the interaction between firms’ equilibrium price and format decisions and its implications for industry profits and consumer switchin...

Limited Memory, Categorization, and Competition

T paper investigates the effects of a limited consumer memory on the price competition between firms. It studies a specific aspect of memory—namely, the categorization of available price information that the consumers may need to recall for decision making. This paper analyzes competition between firms in a market with uninformed consumers who do not compare prices, informed consumers who compa...

Price Competition under Limited Supply

This note investigates the standard Bertrand-Edgeworth duopolistic competition in which two firms sell a homogenous good and have an identical capacity constraint. We examine three firstcome, first-served rationing rules: a) high-to-low rationing where customers arrive in decreasing order of willingness to pay, b) proportional rationing where customer arrivals are independent of willingness to ...

Direct competition results from strong competition for limited resource.

We study a model of competition for resource through a chemostat-type model where species consume the common resource that is constantly supplied. We assume that the species and resources are characterized by a continuous trait. As already proved, this model, although more complicated than the usual Lotka-Volterra direct competition model, describes competitive interactions leading to concentra...

Kinetic memory based on enzyme - limited competition