I analyze the effects of a merger between two firms in a differentiated-goods duopoly. I make the crucial assumption that the industry is at a free-entry equilibrium both before and after the merger. In particular, I allow for the possibility of entry subsequent to the merger. Not surprisingly,...

We develop a dynamic pricing model motivated by observed patterns in business-to-business (and some business-to-customer) transactions. Seller costs are perfectly correlated and evolve according to a Markov process. In every period, each buyer observes (for free) the price set by their current...

We examine the relation between consumer search and equilibrium prices when collusion is endogenously determined. We develop a theoretical model and show that average price is a U-shaped function of the measure of searchers: prices are highest when there are no searchers (local monopoly power)...