The choice of specialization affects firms' brand perception by consumers and it is of crucial importance for their profitability in competitive markets. We model how firms choose specialization through a spatial non-localized competition framework that naturally allows for markets where not all...

We develop a method to measure the intensity of competition between firms. Our method, which we call the Best Response Measure (BRM), is related to the conduct parameter method, but avoids the main problems associated with that method. The BRM relies on a very general framework and limited data...