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Discrete Choice Theory of Product Differentiation
This important study shows that an understanding of product differentiation is crucial to understanding how modern market economies function and that differentiated markets can be analyzed using discrete choice models of consumer behavior. Expand
Market Provision of Broadcasting: A Welfare Analysis ∗
This paper presents a theory of the market provision of broadcasting and uses it to address the nature of market failure in the industry. Equilibrium advertising levels may be too low or too high,Expand
Pricing, product diversity, and search costs: a Bertrand-Chamberlin-Diamond model
We study price competition in the presence of search costs and product differentiation. The limit cases of the model are the ‘‘Bertrand Paradox,’’ the ‘‘Diamond Paradox,’’ and ChamberlinianExpand
Advertising Content
Empirical evidence suggests that most advertisements contain little direct information. Many do not mention prices. We analyze a monopoly firm's choice of advertising content and the informationExpand
Cournot Competition Yields Spatial Agglomeration
Most theoretical models of spatial competition show a strong tendency toward spatial dispersion of firms, yet common observations suggest that firms tend to agglomerate. In this paper, the authorsExpand
Media Mergers and Media Bias with Rational Consumers
We present an economic model of media bias and media mergers. Media owners have political motives as well as profit motives, and can influence public opinion by withholding information that isExpand
A theoretical analysis of altruism and decision error in public goods games
Abstract We formalize an equilibrium model in which altruism and decision-error parameters determine the distribution of contributions for linear and quadratic public goods games. The equilibriumExpand
Market Provision of Public Goods: The Case of Broadcasting
This paper studies the market provision of a specific type of public good: radio and television broadcasts. Its main focus is to explore the ability of the market to provide broadcasting efficientlyExpand
The Efficiency of Indirect Taxes Under Imperfect Competition
This paper considers the relative efficiency of ad valorem and unit taxes in imperfectly competitive markets. We provide a simple proof that ad valorem taxes are welfare-superior to unit taxes in theExpand
Privatization and efficiency in a differentiated industry
We consider a market in which a public firm competes against private ones, and ask what happens when the public firm is privatized. In the short run, privatization is harmful because prices rise: theExpand