We study a preemption game in which two potential competitors come into play at some random secret times. The presence of a competitor is revealed to her opponent only when the former moves, which terminates the game. We show that all perfect Bayesian equilibria give rise to the same...

The emission trading system (ETS) is being applied worldwide in different economic sectors as an environmental regulatory tool to induce reductions of CO2 emissions. In Europe the system has been applied since 2005 to energy intensive installations and, since January the 1st 2012, to airlines...

We use the unique regulatory environment of the pharmaceutical industry to examine how potential competition affects generic drug pricing. Our identification strategy exploits a provision of the Hatch-Waxman Act that awards 180 days of marketing exclusivity to the first valid generic drug...

This paper studies the effect of sunk entry-costs on potential competition in a multi-market framework, where potential entrants have different home market profits. Although sunk-entry-costs are supposed to increase entry barriers, the experimental results suggest that firms view entry costs...