The LeChatelier-Samuelson principle states that as a reaction to a shock, an agent's short-run adjustment of an action is smaller than the long-run adjustment of that action when the other related actions can also be adjusted. We extend the principle to strategic environments and define long run...

We study price competition in markets with a large number (in magnitude of hundreds or thousands) of potential competitors. We address two methodological challenges: simultaneity bias and high dimensionality. Simultaneity bias arises from joint determination of prices in competitive markets. We...

I show that when a firm's pricing is constrained to several price points (for example, if it has to end in 9.99), then on average the pass-through rate is the same as it would have been for an unconstrained firm facing the same demand and cost. I also show that when a firm has a sizable cost of...