The Cournot model remains the most important and widely-applied theoretical model of strategic competition, and countless variations on the Cournot theme have been published in the economics literature. This working paper extends the development of the Cournot framework to incorporate a special...

Quality competition, by increasing sunk costs, may produce levels of concentration even higher than expected in its absence. Based on Sutton's model of endogenous sunk costs and quality competition, we show that consumers, under certain conditions, may benefit from higher industry concentration...

From the very earliest antitrust cases to the present, courts have struggled with a fundamental conflict involving contracts between buyers and sellers of intermediate goods. Namely, on the one hand, contractual arrangements binding a buyer to a particular seller frequently are necessary to...