The impact of information improvement on local stability is examined for continuous dynamics. It is conventionally believed that removal of uncertainty always brings additional stability to an existing equilibrium. This paper shows that the relation between information and equilibrium stability...

We model long-run price competition as a two-stage entry-capacity and pricing game among many potential entrants. Each solution of the game is found to reproduce a long-run competitive equilibrium provided the latter is characterized by a sufficiently large market. This result extends to the...