We analyse the effects of predation in a vertical differentiation model, where the high-quality incumbent is able to price discriminate while the low-quality entrant sets a uniform price. The incumbent may act as a predator, that is, it may price below its marginal costs on a subset of consumers...

In this chapter, we illustrate some classic spatial models. We provide a collection of the principal classic spatial models, by illustrating their characteristics and their main results. In particular, we discuss the Hotelling linear market and the Salop circular market, both under uniform...