Conjectural variation models are popular in empirical research as they infer the degree of market power from real data. IO-theorists, however disapprove it for lack of theoretical foundation arguing that dynamic reactions are forced into a static model with the strategy space and time horizon...

Much significant research has been done to shed light on discrimination of females in, for example, labor markets. Less is known, in contrast, about the amount of discrimination in the virtual world of online gaming. In an early study, Castronova (2004) finds that female avatars receive about...

We study the strategic disclosure of demand information and product-market strategies of duopolists. In a setting where both firms receive information with some probability, we show that firms selectively disclose information in equilibrium in order to influence their competitorś product-market...

We study firms' incentives to acquire private information in a setting where subsequent competition leads to firms' later signaling their private information to rivals. Due to signaling, equilibrium prices are distorted, and so while firms benefit from obtaining more precise private information,...

We model competition on a credence market governed by an imperfect label, signaling high quality, as a rank-order tournament between firms. In this market interaction, asymmetric firms jointly and competitively control the underlying quality ranking's precision by releasing individual...

Private politics are often introduced by market participants in the absence of public regulation. But when is private politics enough, efficient, or better than administratively costly public regulation? We present a novel framework in which we can study the interaction between regulation,...

This paper presents an analytical model to elucidate the incumbent’s optimal strategy on “vertical repositioning” as a countermeasure against entry. A vertically differentiated market is considered: an entrant enters the market with its quality choice, and then the incumbent responds by...

Increasing environmental awareness may affect the pleasure of consuming a good for which an environmental friendly substitute is available. When deciding to buy differentiated products, a compromise is sometimes made between preferred characteristics of the good and its environmental properties....

Increasing environmental awareness may affect the pleasure of consuming a good for which an environmental friendly substitute is available. When deciding to buy differentiated products, a compromise is sometimes made between preferred characteristics of the good and its environmental properties....