Behrens, Christiaan; Lijesen, Mark - Tinbergen Instituut - 2012
regulator ignores the stochastic nature of demand, regulation lowers welfare for a large range of parameters, that is for …We explore the characteristics of a capacity-then-price game for a duopoly market with product differentiation and … stochastic demand. The analysis shows that a minimum threshold value for the level of vertical product differentiation exists …