Models of spatial competition have proven useful in describing differentiated product markets. A serious problem is the nonexistence of Nash equilibria. This problem is resolved by modelling the price formation process using the core. The equilibrium is the outcome of a two-stage process. In the...

A model of duopoly competition in nonlinear pricing when firms are imperfectly informed about consumer locations is analyzed. A continuum of consumers purchase a variable amount of a product from one of two firms located at the endpoints of the market. At the Nash equilibrium in quantity-outlay...

We study labor market competition with heterogeneous firms and consumers. Worker types are continuously distributed within the population and a finite number of firms have specific skill requirements. Specific human capital investment is the cost of training a worker to be able to work for a...

A model of duopolistic spatial price discrimination on a network is extended by adding capacity constraints on firms'outputs. With zero-one consumer demands, some configurations of capacity levels and locations do not have pure strategy Nash equilibria in price schedules, in particular when...

We study imperfect competition in the labor market when worker skills are continuously distributed within the population and a finite number of firms have different job requirements. The cost of training a worker depends on the difference between this worker's skill and the employer's needs....

This Paper studies the positive aspects of destination vs. origin principles of commodity taxation as well as tax harmonization, with an emphasis on the international implications of these measures when firms are mobile. We investigate the tax incidence of these two principles on price levels...