This work builds and tests a vertical product differentiation duopoly model, where firms first choose quality and then choose prices, in the lab. We consider both the case in which production costs are unaffected by the quality of the good produced and the case in which production costs increase...

This paper endogeneizes the level of market coverage in a vertically differentiated market where firms decide first their qualities and next their prices. We extend the few endogeneization results to a more realistic setup, with quality dependent unit production costs. We show that, depending on...

This paper revisits a vertically differentiated duopoly game where producers first simultaneously set qualities and then simultaneously set prices. We theoretically and experimentally explore the impact of different consumers’ preferences dispersion levels. We find that firms suboptimally...

This paper reviews the literature on new housing supply. The paper starts by summarizing the results of the empirical studies on housing supply, showing that overall these studies reject the hypothesis of a perfectly elastic supply and reveal that housing supply is negatively related with...