We show that the long-term properties of price and cost in Chamberlin's monopolistic competition model can be reproduced with a soft capacity constrained oligopoly for homogeneous good free entry.

Eric K. Clemons • Il-Horn Hann • Lorin M. Hitt Department of Operations and Information Management, The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104 Graduate School of Industrial Administration, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213 Department of Operations and Information Management, The Wharton School, University of Pennsylvania, Philadelph...

We employ a vertical differentiation model to examine the potential bias in pricing-to-market (PTM) results when using unit values aggregating differentiated products. Our results show that: i) false evidence of PTM (“pseudo PTM”) is always found when using unit values, whether the law of one price holds or not; and ii) the extent to which results are biased due to pseudo PTM increases with the...

The Japanese match industry is an early case of that changed global market dynamics by building international competitiveness through combining low-cost and low-price strategies with product differentiation. This differentiation was achieved the registration trademarks for all matches exported, total quality control, strong investments in graphic design to adapt brands their imagery different h...

We study a multi-server queueing model of a revenue-maximizing firm providing a service to a market of heterogeneous priceand delay-sensitive customers with private individual preferences. The firm may offer a selection of service classes that are differentiated in prices and delays. Using a deterministic relaxation, which highlights the first-order economic structure of the problem, we constru...

Pure-play online retailers have created pressure on traditional bricks-and-mortar retailers forcing many of them to move to a multi-channel business model to provide customers online storefronts in addition to local physical stores. Conventional wisdom suggests that online prices be lower than instore prices. This study investigates whether multi-channel retailers follow such clear-cut pricing ...

The public cloud “infrastructure as a service” market possesses unique features that make it difficult to predict longrun economic behavior. On the one hand, major providers buy their hardware from the same manufacturers, operate in similar locations and offer a similar menu of products. On the other hand, the competitors use different proprietary “fabric” to manage virtualization, resource all...

This paper studies factors that might affect the price (i.e. a fixed licensing fee) and the demand for technology licensing. The author finds that the licensor’s licensing fee is found to increase in the degree of product differentiation between technology holders, the degree of knowledge inappropriability, and the level of transaction costs of technology licensing. Also, product differentiatio...

Products are said to be differentiated if consumers consider them to be imperfect substitutes. For example all consumers may agree about the relative quality of two types of the same good, but may differ in their willingness to pay for such differences. If consumers view brands in an industry as imperfect substitutes in this way, a firm may raise its price above that of its rivals without losin...