Whether or not banks are engaged in ex ante monitoring of customers may have important consequences for the whole economy. We approach this question via a model in which banks can invest in either information acquisition or market power (product differentiation). The
Two weak restrictions on equilibrium market structures are that firms who decide to enter make sufficient profits to cover entry costs and fixed costs of production, and that no new firm could profitably enter. I examine these restrictions by the size distribution
The consumer market is getting more competitive, and the fundamental question is; what should the companies do in order to gain new customers and sustain the existing ones? Primary attempt has been to offer price discounts and special deals to the customers.
This dissertation is comprised of two essays related, broadly, to themes of competitive dynamics and economic consequences. In Essay One, “Many Fields of Battle: How Cost Structure Affects Competition across Multiple Markets,” a conjectural variation model is developed to examine what role