In a differentiated oligopoly market, it is often the case that consumer’s ex post preferences over different product qualities depend upon the state of nature which is not yet observable to the consumers at the time of purchase. One of the most typical examples is a market for durable goods...

We characterize the interplay between firms’ decision in terms of product differentiation and the nature of their ensuing market behaviour. We prove the existence of a non-monotone relationship between firms’ decision at the development stage and their intertemporal preferences.

Advance production serves as a means of quantity commitment. Therefore, a quantity-competing firm may have an incentive to invest in advance production in order to pre-empt its opponent(s), even when [i] it is technologically more costly than on-spot production, and [ii] it does not entitle the...

This paper explores an algorithm which serves as a market auctioneer under the following constraints: [i] traders arrive randomly and each sales/purchase order should be executed at the currently posted price (sequential service), [ii] the auctioneer need not know the exact fundamental value of...

We characterize the interplay between firms’ decision in terms of product standardization and the nature of their ensuing market behaviour. We prove the existence of a non-monotone relationship between firms’ decision at the product stage and their intertemporal preferences.