We consider a simple model of market structure determination with discrete product differentiation and strategic interaction between firms. Our equilibrium concept is based on a set of relatively weak conditions that describe the profits of active and potential firms in a market. In our model,...

A model with new industries opening as a Poisson arrival is set up. Firms have the choice to "hop" into new industries searching for their abilities there. The model aims at linking endogenous skill prices (and the value of the firm), the product life cycle and the timing of the switch to the...

We provide a framework for inference in discrete games that involve multiple decision makers and use it to study airline market structure in the US. We make inferences on a ``class of models'' rather that looking for point identifying assumptions that pin down a unique model. We extend the...

In markets where spatial competition is important, theory predicts increases in producer density (the number of producers per unit area in the local market) should lead to lower average prices. When producers are heterogeneous, this link exists for two reasons. First, the greater product...

Frequently, new technologies arise under two or more alternative designs. Moreover, the state of each design evolves over time as a result of various cumulative improvements. In this paper, we study the strategic interaction between "incumbent" firms (those who already own a design) and...

Within the independent private-values paradigm, assuming asymmetric bidders,using the principle of dynamic programming, and employing the notion of Bayes-Nash equilibrium, we demonstrate nonparametric identification of the data-generating process of the sequence of winning prices at multi-unit,...

The incomplete nature of contracts governing international transactions limits the extent to which the production process can be fragmented across borders. In a dynamic, general-equilibrium Ricardian model of North-South trade, the incompleteness of international contracts is shown to lead to...

This paper develops a relatively simple method for computing the Markov Perfect Equilibria of dynamic games with asymmetric information (see Maskin and Tirole (1992, 2001)). We consider a class of dynamic games in which there is finite number of active players in each period, each characterized...

We build a dynamic model of competition between operating systems. Software applications run on each platform and are owned either by one of the OS companies or by an independent producer. Consumers are forward looking and face lock-in to an operating system due to switching costs. We also look...

Using data on Government of Canada securities auctions, this paper shows that in countries where direct access to primary debt issuance is restricted to government securities dealers, "order-flow" information is potentially the key source of private information for these security dealers....