This paper analyses the flexibility decision of firms. In particular we (a) ask whether the flexibility choice is influenced by market structure (concentration, market growth, ...), (b) compare the firms' actual choices with welfare maximising flexibility decisions (c) investigate the...

Whereas a large number of empirical studies have been devoted to analysing consumer demand for specific products, much less attention has been paid to the household's demand for product variety (the number of different products consumed in a specific time period). This paper analyses consumer...

Substantial increases in retail concentration (particularly in Europe) raise concerns about the welfare implications for consumers. In a formal model, we argue that retailer market power reduces upstream firms incentives to introduce new products. On the basis of a survey of firms in German food...