Gina an industry producing a single product of varying qualities within a technologically feasible compact set, we examine the choice of qualities of a monopolist. We focus on the case where the consumers' income distribution is sufficiently wide as to rule out the case of natural monopoly and...

In this paper, we review the literature on vertical product differentiation in connection with its impact on market structure. Two types of vertical differentiation are identified according to whether consumer unanimity over product ranking is maintained at prices reflecting average cost...

We examine the interaction between financial and microeconomic decisions in a differentiated duopoly under uncertainty as to consumer taste for quality. Financing is by equity and debt and product specification is endogenous. We consider two three-stage games, according to the order of moves:...

We examine the interaction between financial and microeconomic decisions in a differentiated duopoly where additional willingness-to-pay for high quality is uncertain. Product specification is endogenous. We consider two three-stage games, according to the order of moves: qualities-financial...

This paper examines the effects of the imposition of minimum quality standards (MQS) on a vertically differentiated natural duopoly with free entry. It is shown that the welfare effects of MQS are crucially dependent upon the timing of the quality choice with respect to the decision to enter the...