We study the social welfare optimum for a vertically differentiated duopoly under partial market coverage and variable costs. Costs are specified as linear in quantity and quadratic in quality. We demonstrate that the spread of product quality observed under a profit maximizing duopoly is too high, relative to the social welfare optimum. We also find that high quality firms in a duopoly will ha...

the price volatility spillover effect indicates that price volatility in different markets can be mutually affected. the objective of the study is to analyze volatility price spillover effects on the vertical levels including input, wholesale and retail sale levels in the tehran beef supply chain. the multivariate generalized autoregressive conditional heteroskedastic (mvgarch) model was used b...

Designing business models that take into consideration the role of advertising support is critical to the success of online services. In this paper, we address the challenges of these business model strategies and compare different ad revenue models. We use game theory to model vertical differentiation in both monopoly and duopoly settings, in which online service providers may offer an ad-free...

By studying the effect of different patterns of demand in an evolutionary selection model this paper shows how product differentiation reduces competitive selection pressure and thus increases the chances for the coexistence of firms. With the example of a duopoly it shows that: (1) a monopoly is the likely outcome of competition in homogeneous products, (2) although product differentiation doe...

In this paper, we study the pricing of Internet services under monopoly and duopoly environments using a game-theoretic model in which a service provider and users all try to maximize their payoffs. First, we compare a few popular pricing schemes, including flat, volume-based, two-part and nonlinear tariffs with respect to revenue, social welfare and user surplus. We perform a sensitivity study...

This article investigates best-price clauses as a strategic device to facilitate collusion in a dynamic duopoly game. Best-price clauses guarantee rebates on the purchase price if a customer finds a better price after his purchase. Two different price clauses are distinguished: "most favored customer" and "meet or release." I examine the collusive potential of both clauses in a finite-horizon d...

Two financial services firms (FSFs) produce information on future returns from risky assets, incorporate this information in a report and sell the reports to investors. The FSFs make strategic choices of the quality, differentiation and prices of their reports. Their optimal strategic choices of quality and differentiation divide the market for the report into three segments. Each FSF has a mon...

A Combined Retail Evolution model was developed for this study in fulfillment of Objectives 1 and 2. The Combined Retail Evolution model was developed from previous retail evolution theories (i.e., the conceptual and empirical literature reviewed in Chapter II), which provided detailed information about retail change and fragmented information about consumer change. No single retail evolution t...