Suppose that a seller and a buyer have private valuations for a good and that their respective utilities from a trading mechanism are given by u(subscript 's') and u(subscript 'b'). Consider the problem of maximizing E[('lambda')u(subscript 's') + (1 - 'lambda')u(subscript 'b')] for some weight...

This paper presents a general model of the demand for differentiated products which has as special cases two popular models used to analyze welfare and competition in monopolistically competitive markets: the model of spatial competition and the symmetric aggregate benefit function approach. The...

This paper analyzes duopolistic price-leadership games in which firms have capacity constraints. The authors show that when capacities are in the range where the simultaneous-move price-setting game (with efficiently rationed demand) yields a mixed-strategy solution the large firm is indifferent...