The seminal work of Fudenberg and Tirole (1985) on how preemption erodes the value of an option to wait raises general questions about the relation between models in discrete and continuous time and thus about the interpretation of its central result, relying on an "infinitely fine grid". Here...

The paper provides a micro-founded differentiated duopoly illustration of a beauty contest, in which the relative weight put on the competition motive of the payoffs is not exogenous but may be manipulated by the players. The conflict between the competition and the fundamental motives, already...

Allowing firms to cooperate in their R&D is an industrial policy which has received much attention in recent economics literature. Many of these contributions are based on the seminal analysis of d?Aspremont and Jacquemin [1988]. We provide a general version of their model which encompasses...

This paper presents a new method for estimating discrete games based on bounds of conditional choice probabilities. The method does not require solving the game and is scalable to models with many firms and many discrete decisions. We apply the method to study merger effects on firm entry and...

The focus of this paper is on the consequences of asymmetric spillovers on the strategic investments in an oligopoly with leaders and followers. Both in the investment and output game, leaders move before the followers. Spillovers may occur between leaders and between followers and from leaders...

We introduce a model of oligopoly dynamic pricing where firms with limited capacity face a sales deadline. We establish conditions under which the equilibrium is unique and converges to a system of differential equations. Using unique and comprehensive pricing and bookings data for competing...

We develop a model of R&D collaboration in which individual firms carry out in-house research on core activities and undertake bilateral joint projects on non-core activities with other firms. We develop conditions on the profit functions of the firm under which R&D investments in different...