Competition in a market for informed experts' services

Article Abstract:

The organization of markets where the seller is also the expert who determines the customer's needs, such as medical fields and car and appliance repairs, is examined through a model presenting a major, high-cost problem and a minor, low-cost problem. The customer exercises discipline over the seller/expert, to an extent dependent upon the costs involved, by searching for multiple opinions and including reputation considerations. The search factor can produce price increases when experts are liable to make diagnosis errors.

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Mix and match compatibility with vertical product dimensions

Article Abstract:

The profits and prices of firms in a duopoly wherein two firms manufacture compatible computer components were studied in a model. The model was subdivided to consider product incompatibility and shared quality leadership, incompatibility and complete quality leadership and compatibility and shared quality leadership. It was concluded that product price and profits increase when there is compatibility. Compatibility also enhances product differentiation and market strength of the duopolists.

Models, Vertical integration, Duopolies

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Product variety and firm agglomeration

Article Abstract:

The clustering or agglomeration of firms selling similar products is an observed phenomenon among various industries. However, this agglomeration is pervasive in all industries. A study is done on the source of variation in agglomeration among industries. A theory based upon consumer search is developed which makes predictive statements on the relationship between product heterogeneity and firm agglomeration.

Research, Business enterprises

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