This paper examines a two-stage competition where firms simultaneously choose the number of products and qualities in the first stage, and then compete in prices. It is shown that a monopolist must sell a single product. In addition, in any equilibrium of multiproduct duopoly, there are...

The paper investigates a two-stage competition in a vertical di¤erentiated industry, where each …firm produces an rbitrary number of similar qualities and sells them to heterogeneous consumers. We show that, when unit costs of quality are increasing and quadratic, each …firm has an incentive...

This article proposes a Cournot model of two-stage competition to examine the patterns of vertical product differentiation in a multiproduct duopoly. Firms simultaneously choose the number of products and their qualities at the first stage and compete in quantities at the second stage. We show...

Most existing models of spatial agglomeration economics do not include the effects of the governmental sector in an urban configuration, although the governmental sector plays an important role in economic activity. We discuss how an exogenous distribution of locations of governmental facilities...

This paper demonstrates that a pollution tax with a fixed cost component may lead, by itself, to stratification between clean and dirty firms without heterogeneous preferences or increasing returns. We construct a simple model with two locations and two industries (clean and dirty) where...

This paper demonstrates that a pollution tax with a fixed cost component may lead, by itself, to stratification between clean and dirty firms without heterogeneous preferences or increasing returns. We construct a simple model with two locations and two industries (clean and dirty) where...

We develop a dynamic model of intermediate goods trade in which the pattern and the extent of intermediate goods trade are endogenous. We consider a small open economy whose …final good production employs an endogenous array of intermediate goods, from low technology (high cost) to high...