We consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in …-inefficiency of the price/quality offers. But, better price/quality combinations are signalled with lower prices in one type and with …

model that combines aspects of non-cooperative R&D with the theory of differentiated oligopolies: In stage one, firms …

and trade in which duopolistic firms face quality-dependent costs and compete in quality and price in two segmented …

and price in two segmented markets. Minimum quality standards, set according to the principle of Mutual Recognition, can …

price discriminate while the low-quality entrant sets a uniform price. The incumbent may act as a predator, that is, it may … price below its marginal costs on a subset of consumers to induce the rival's exit. We show that the entrant may adopt an … show that when the incumbent may choose whether to price discriminate or not before the game starts, if the quality cost …

price discriminate while the low-quality entrant sets a uniform price. The incumbent may act as a predator, that is, it may … price below its marginal costs on a subset of consumers to induce the rival's exit. We show that the entrant may adopt an … show that when the incumbent may choose whether to price discriminate or not before the game starts, if the quality cost …

costs and quality-dependent costs of production and compete in quality and price in the domestic market. Quality …

Firms signal high quality through high prices even if the market structure is highly competitive and price competition … business to rival firms with higher probability. Some of the revealing equilibria involve high degree of market power (price …