We examine the persistence of monopolies in markets with innovations when the outcome of research is uncertain. We show that for low success probabilities of research, the incumbent can seldom preempt the potential entrant. Then the efficiency effect outweighs the replacement effect. It is vice...

We develop a model of Ramp;D competition between an incumbent and a potential entrant with network externalities and durable goods. We show that the threat of entry eliminates the commitment problem that an incumbent may face in its Ramp;D decision due to the goods' durability. Moreover, a...

When reviewing mergers and similar transaction the American antitrust enforcers must, at times, protect competition in markets for products which do not exist. These include nascent competition cases. To justify doing so courts must develop a new legal doctrine: the current closest legal...