Three essays in microeconomics

In this dissertation, we study three issues in Microeconomics. The topics range from marketing to game theory and environmental economics. The first chapter presents a novel model for persuasive advertising. Two firms compete in a market where they optimally decide their advertising and pricing strategies. The second chapter studies the competition of duopolists when the customers are boundedly rational with respect to processing information. Finally, the third chapter considers a market as an incentive scheme for promoting investment in Renewable Energy Resources and analyses the price and factors that affects price stability.