In this paper we investigate a two-period Bertrand-Edgeworth oligopoly model in which two capacity-constrained firms (incumbents) compete facing future demand uncertainty as well as uncertainty about entry. These firms must choose between pricing low and secure sales in the first period or,...

We analyze the effects of asymmetric switching costs on two identical firms that produce an homogeneous good and compete in prices. Both firms inherit a fraction of the market which is “locked-in” by the switching costs. When switching costs are low, firms face a tradeoff between charging a...

This paper investigates how video game publishers’ choice of game release date is affected by the expected level of competition within the game’s product niche. We identify game niches by genre, age-appropriateness, a four week window cohort, publisher and console system. Our analysis is...

We examine the strategic use of Corporate Social Responsibility (CSR) in imperfectly competitive markets. The level of CSR determines the weight a firm puts on consumer surplus in its objective function before it decides upon supply. First, we consider symmetric Cournot competition and show that...

This paper develops a modified Stackelberg game model for a duopoly market. Unlike the traditional duopoly where the leader and the follower both exist in the market, the modified model supposes a preexisting leader and a follower that has not yet entered the market. This specific situation has...

This paper investigates how video game publishers' choice of game release date is affected by the expected level of competition within the game's product niche. We identify game niches by genre, age-appropriateness, a four week window cohort, publisher and console system. Our analysis is based...

We present a continuous-time real options game in which two firms must decide at each instant of time whether to be in or out of a market that expands up to a random maturity date and contracts thereafter. Firms differ only in the opportunity costs of usage of the assets they employ (e.g., owing...

We study the duopoly exit equilibrium in a multimarket environment with declining demand, and investigate the roles of strategic merger, agency cost, and collusion in a multimarket exit game.Cross-market spillovers with endogenous duration and the strategic merger of outside firms can serve as...

This paper discusses a simultaneous market entry game between two firms with different fixed costs. This case is a typical application of mixed strategy equilibria. Conventional wisdom would suggest that the low-cost firm is more likely to enter the market. This presumption is wrong. Instead,...

In this paper, we study the rational for an incumbent to launch a second brand when facing potential entry in a market with quality differentiated products and a fringe producer. Depending on market size, costs for a second brand and a potential entrant’s setup cost the incumbent might use a...