A simple duopoly model is used to show the advantage to a manufacturer of se lling his product through an independent retailer (vertical separatio n) rather than directly to consumers (vertical integration). Vertical separation is profitable insofar as it induces more friendly behavio r from the...

Within a slightly modified version of Hotelling's model_(1929) the author reconsiders the claim that the threat of entry induces existing firms to produce a larger number of products than otherwise. The author shows that entry deterence, although optimal, need not be achieved through product...

The paper models information as possibilities consistent with signals received from the environment. Knowledge is obtained by reasoning about the signals received as well as those that might have been received but were not. The term "knowledge" is used to refer to those beliefs that are obtained...

A simple characterization of profit maximization is provided, based on the hazard rate function corresponding to the distribution of res ervation prices. Catastrophe theory is then applied to characterize t he dependence of equilibrium price and output on cost and demand cond itions. The...