We study personalized price competition with costly advertising among n quality-cost differentiated firms. Strategies involve mixing over both prices and whether to advertise. In equilibrium, only the top two firms advertise, earning “Bertrand-like” profits. Social efficiency is U-shaped in the ad cost, with losses due to excessive advertising and sales by the “wrong” firm. Quality or cost impr...

Previous theoretical researches show that learning from good performers yields intense competition and results in the low profitability of firms. These researchers do not take into account differentiation strategies being referred as a useful strategic tool to mitigate competition. We introduce an evolutionary (learning) game into a duopoly model with product differentiation on the Hotelling li...

In this paper, I analyze the trade-off between mimicking and counterprogramming strategies in the payand the advertiser-supported television industries. Two channels compete with respect to both program profile and program quality. I show that profile differentiation is higher under pay-support than under advertiser-support, as a consequence of the inability of channels to compete in price unde...

The paper studies equilibria for economies with imperfect competition and non-convex technologies. Following Negishi, firms maximise profits under downward-sloping perceived demand functions. Negishi’s assumptions, in particular the assumption of a single monopolistic competitor in each market, are relaxed. Existence of equilibria is obtained, under otherwise standard assumptions, for productio...

In this paper, we extend the non-cooperative analysis of oligopoly to exchange economies with infinitely many commodities by using strategic market games. This setting can be interpreted as a model of oligopoly with differentiated commodities by using the Hotelling line. We prove the existence of an “active” Cournot-Nash equilibrium and show that, when traders are replicated, the price vector a...

We present a laboratory experiment on the impact of price framing on consumer decision making. Consumer subjects face a search market where two sellers offer a homogeneous good. We examine six different price frames with linear perunit pricing (that is displayed as such) serving as a benchmark. We find that all frames deviating from the benchmark have some negative impact on consumer decision m...

This article reinterprets, under a common framework, previous results on location choice under delivered pricing. The paper clearly identifies the economic forces which explain why the socially optimal locations are an equilibrium of the location-price game in some models, and why they are not an equilibrium in other models. The paper shows that the rationale behind Hamilton et al. (Reg Sci Urb...

We analyse the subgame perfect equilibrium of a four stage game in a model of vertical product di erentiation, where the consumer's evaluation of a product depends on its inherent quality and on its network's size. First, two rms choose their product's inherent quality. Then they may mutually agree on providing an adapter before competing in prices. Finally, consumers buy. We nd that, despite t...

in this article, we have used 36 electricity distribution companies of iran and by using input-oriented dea, we analysis the companies technical efficiency with respect to group frontier and metafrontier following restructuring, then we investigate the factors affecting efficiency. the companies decomposed to two groups in terms of high and low circuit density. for discussing the impact of stru...