This paper provides a simple model of endogenous horizontal product differentiation that has two important implications. First, the model can explain the “empirical Bertrand paradox” – the failure to observe homogeneous product Bertrand oligopoly. If product differentiation is possible at reasonable cost, then Bertrand firms would always invest in product differentiation. Using a quadratic util...

In this paper, we analyze the issue of optimal tariffs when the Northern and Southern firms compete in quantities in an imperfectly competitive Northern market and there are Ž . potentially varying degrees of intellectual property rights IPR violation by the South. IPR Ž . violation is reflected through the leakage of technological knowledge ‘‘spillovers’’ from the Northern to the Southern firm...

Within the framework of stochastic two-person nonzero-sum games, we deal with two commonly used models in engineering and economics-namely, the LQG (Linear-Quadratic-Gaussian) and the duopoly problems. We investigate how variations in information available to either player affect the equilibrium Nash strategies for these two models, whose existence and uniqueness have been proven in the paper. ...

This paper investigates the impacts of competition in autonomous mobility-on-demand systems. By adopting a network-flow based formulation, we first determine optimal strategies profit-maximizing platform operators monopoly and duopoly markets, including prices rides. Furthermore, characterize operator's profits consumer surplus. We show that for duopoly, equilibrium rides have to be symmetric b...