Dynamic duopoly with congestion effects

Article Abstract:

An analysis of duopolistic competition between horizontally differentiated firms selling durable goods or services that are subject to congestion. Consumers compare present prices and future congestion rates at each point of time before buying one unit of the commodity from one of the firms. Existence of negative consumption rates is known to soften competition while the firm with larger capacity has larger market share, a higher price and lower congestion rate. The price of an entrant decreases gradually after entry, while the incumbentEs price rises, with the congestion effect getting stronger in cases of faster speed of convergence.

Study and teaching

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Infant-industry tariff protection with pressure groups

Article Abstract:

An examination of the Spanish iron and steel industry in the first third of the 20th century showed that the high tariffs imposed on steel products were justified by the model in terms of incomplete information. The incomplete information is manifest in the competitive market environment for Spanish steel production as well as the the condition that production becomes the basis for tariff computation.

Administration of General Economic Programs, Tariffs & Duties, Models, Taxation, Steel industry, Tariffs

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Two-part tariff competition in duopoly

Article Abstract:

The practice of uniform pricing and the two-part tariff are studied using different models. The study reveals that profits and social welfare effects from two-part tariff are more than that from uniform pricing.

Analysis, Evaluation, Pricing policies

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