Incentives to vertically integrate are studied in an industry where downstream firms are vertically differentiated. Vertical integration by one of the firms increases production costs for the rival. Increased production costs impact quality investment both by the integrated firm and the unintegrated rival. A firm, integrating first, always produces the high quality good and earns higher profits...

This paper presents and discusses some competitive learning algorithms for data clustering. A new competitive learning algorithm, named the dynamically penalized rival competitive learning algorithm (DPRCL), is introduced and studied. It is a variant of the rival penalized competitive algorithm [1] and it performs appropriate clustering without knowing the clusters number, by automatically driv...

This paper presents a model of multimarket competition with capacity investments. A firm which serves a single market enjoys a strategic advantage over a multimarket rival. It “overinvests”recognizing that its rival can deploy capacity to another market. The focused firm, due to the specificity of its investment, has no such “outside option”. The model shows how lower costs and a sharper focus ...

This article analyses the pricing policy equilibria emerging in a duopoly when one firmmay choose whether to engage in behaviour-based price discrimination or uniform pricing while the rival price discriminates. The question we address is: should a firm price discriminate when facing a price discriminating rival? Our main conclusion is that, if the consumers are sufficiently myopic, it is bette...

Horizontal differentiation is generally derived from the aggregate utility function and assumed to be symmetric. However, empirical work suggests that asymmetric horizontal can exist in practice. This paper examines topic of by allowing a firm’s costly advertising have different impact on its own demand than it does rival. leads interesting analytical result increases cross-price effect rival l...

The United States’ perception of China as a revisionist strategic rival will complicate transatlantic policy coordination.