Few studies analyze the endogenous emergence of price competition in a new product market. This paper analyzes two differentiated products, an existing and newly introduced substitutable product, investigates conditions under which endogenously emerges market context choice between engaging holding leadership. We demonstrate that Bertrand when setup cost for is high enough. result implies gover...

We study price discrimination strategy of an Incumbent platform that faces competition from Entrant. introduce heterogeneous agents on the consumer side, where buyers assign different values to interaction benefits generated a platform. analyse dominant firm equilibrium, incumbent offers two versions its service consumers. The results are compared across scenarios. first is when sellers allowed...

Prior to the Telecommunications Act of 1996, many U.S. states restructured their regulatory framework by replacing rate-of-return regulation with competition in both the local exchange service and local long-distance markets and adopting price regulation (price caps and price freezes). Using a panel data set of incumbent Ž rm prices for three services, I investigate whether price regulation and...