The diffusion of new technologies is their adoption by different economic agents at different times. A classical concern in the diffusion of technologies (Griliches 1957) is the importance of raw technical progress versus economic forces. We examine this classical issue in a modern market, web...

This paper devises new methods for measuring firms' sunk costs and their effect on market structure. It builds on our earlier work that estimated the size of unobserved fixed costs from entry thresholds, the amount of market demand necessary to support a new entrant. Here we show that...

The shape of short run marginal cost (SRMC) is critical to understanding pricing behavior over the business cycle. We construct an econometric model of output and price determination for an industry with steep SRMC around capacity. In the North American aluminum industry, the capacity constraint...