This paper shows how political parties differentiate to reduce electoral competition. Two parties choose platforms in a unidimensional policy space, and then candidates from these parties compete for votes in a continuum of constituencies with different median voters. Departing from their...

We present a Hotelling model of price and advertising competition between prescription drugs that differ in quality/side effects. Promotional effort results in the endogenous formation of two consumer groups: brand loyal and non-brand loyal ones. We show that advertising intensities are...