An incumbent monopolist is uncertain about its linear demand, but can acquire information at a cost. We determine how an entry threat affects the firm's information acquisition. This effect depends on what the entrant observes about the incumbent's information choice. We consider all four...

Expected consumer's surplus rarely represents preferences over price lotteries. Still, I give sufficient conditions for policies which maximize aggregate expected surplus to be interim Pareto Optimal. Besides two standard partial equilibrium conditions, I assume that feasible prices satisfy a...