We apply the potential game approach to analyze the problem of two-sided platform entry competition. According to the equilibrium results, the platform with the bigger “value” will capture the entire market, and the incumbent has the “incumbent value advantage” over the entrant. When the...

Within a sample of firms undergoing financial distress, where the incentive to send false positive signals is high, we show that insider trading serves as a credible information channel about potential recovery for outside investors. We employ credit rating downgrades as confirmation of the...

The rank list model is a general non-parametric choice model that provides an intuitive and flexible framework to capture rational consumers' preferences. The rank list model assumes that each customer has a fixed and consistent preference ranking over all products and chooses the product that...