We analyse the optimal pricing choice of an incumbent firm that sells a good with network externalities and is threatened by the entry of a higher quality variant. In the framework of a vertical differentiation model, we find a necessary and sufficient condition under which quality improvement...

In this paper we analyze how the technology used by downstream firms can influence input and output market prices resulting from collusive agreements between some downstream and upstream firms. We show via an example that both these prices increase under a decreasing returns technology while the...

This contribution investigates the effictiveness and welfare implications of fiscal policies in a context of multilateral trade, when traders behave strategically. The present approach deals simultaneously with two aspects of fiscal policies: collecting resources for redistributive purposes and...

We investigate the effectiveness of tax and transfer policies in correcting market distortions when the economy is imperfectly competitive. We perform this analysis in the context of an exchange model representing a bilateral oligopoly situation, which constitutes a particular example of a...