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Price setting by firms and search by customers is analyzed, relaxing two basic attributes of most search models: price precommitment and agent heterogeneity. Customers are characterized by individual demand functions for a homogeneous good and can choose to employ a threat to search. Firms...
Most research on product positioning supports the idea of differentiation. Product standardization (i.e., minimum differentiation) occurs only under very limiting assumptions. Yet, similar products are often observed in the marketplace. We attempt to restore the case for standardization by using...
This paper analyzes, within the framework of the new regulatory economics that emphasizes asymmetries of information, the optimal structure of an industry. The duplication of fixed costs incurred in a duopoly structure may be socially justified in a static model by three effects: the sampling...
The survey classifies economic theories of the firm into four categories based on the level of aggregation in economic models: (1) neoclassical, (2) industrial organization, (3) contractual, and (4) organizational incentive. Economic theories of the firm are evaluated on the basis of their...
Commitment: The Dynamic of Strategy, by Pankaj Ghemawat. Ghemawat's Commitment makes recent results in game‐theoretic industrial organization accessible and useful to practitioners in the field of strategic management. This book contributes to the management strategy literature on two levels. On...
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