The paper describes a von Stackelberg model of pricing behavior by a dominant firm in a market for an exhaustible resource. The results obtained differ dramatically from those that characterize a pure monopoly. If the marginal production cost in the competitive fringe is constant, the optimal...

We examine investment by firms in 24 chemical product industries to determine whether firms invest preemptively to achieve persistent increases in market share or whether there is evidence of behavior to maintain market share. The data indicate that investment reduces the probability that rival...

Committing to prices that result in rationing may be more profitable than setting market-clearing prices if customers must make sunk investments to enter the market. Rationing is ex post inefficient, but it gives more surplus to lower-value customers who are the marginal consumers the...

Optimal regulation, subject to informational constraints, is analyzed for industries for which production requires complementary inputs. An issue for regulatory policy is whether supply in these industries should be "bundled" or "unbundled." Bundled supply calls for regulation of an integrated...

In markets with increasing returns to scale in investment, competition will occur over both the amount and the timing of new capital construction. This article develops a theory of competition in markets with indivisible and irreversible investments. The consequences of competition depend on the...