We introduce a model of oligopolistic price setting where products are characterized by style and quality. Producers are identified by a unique style, and are able to price discriminate among consumers using quality. We show that, in contrast to Mussa and Rosen's work on the discriminating...

In this paper we consider a model of oligopolistic competition where firms make a two-dimensional product line decision. They choose a location in style space, thus, inducing horizontal differentiation, and produce different qualities (a product line) of a given good (vertical differentiation),...

The paper addresses the issue of linguistic diversity and its impact on economic policy and political decisions. Importance of the topic is illustrated by examination of optimal sets of official languages in the European Union. It is shown that alternative estimation methods of language...