We analyze market dynamics under Bertrand duopoly competition in industries with network effects and consumer switching costs. Consumers form installed bases, repeatedly buy the products, and differ with respect to their switching costs. Depending on the ratio of switching costs to network...

We develop a dynamic model of strategic investment in the Eurasian transport system fornatural gas. In the absence of international contract enforcement, countries may distortinvestment in order to increase their bargaining power, resulting in underinvestment incheap and/or overinvestment in...

In the literature on international trade, very little attention has been given toinformational asymmetries between firms and consumers with respect to product quality.The few economic models that analyze the question of how asymmetric informationabout product quality might affect trade flows...