This article examines "consistent" conjectural variations in an oligopoly model with a homogeneous product. A conjectural variation is consistent if it is equivalent to the optimal response of the other firms at the equilibrium defined by that conjecture. When the number of firms is fixed, we...

We consider the incentives for oligopolistic manufacturers to adopt exclusive dealing. Manufacturers producing differentiated brands can choose to distribute through exclusive retail dealerships or nonexclusive dealerships. With nonexclusive dealing, manufacturers face an interbrand externality...

This paper generalizes a model of monopolistic competition attributable to Spence (1976). Firms produce symmetrically differentiated products with declining or U-shaped average costs. Free entry drives profits to zero in equilibrium. Spence finds that when firms behave "competitively," in a...

An input monopolist could price discriminate among all downstream industries by integrating into all but the one with the most inelastic derived demand. We demonstrate that a dominant firm will have a similar incentive to integrate into industries with more elastic derived demands. However, the...

This article examines the efficacy of intrabrand rivalry in a monopolistically competitive industry. Intrabrand rivalry through trademark licensing would result in lower prices for consumers, but would also reduce product diversity because all brands would be less profitable. Using both the...