The paper analyzes the effects of strategic behavior by an insider in a price discovery process, akin to an information tatonnement, in the presence of a competitive informed sector. Such processes are used in the preopening period of continuous trading systems in several exchanges. It is found...

We show in a differential game of a differentiated product doupoly model of price competition with costly production adjustment that when firms are symmetric the leadership attempt by each firm turns into Stackelberg price warfare yielding a (MArkov perfect) steady state outcome more competitive...