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The seminal work of Fudenberg and Tirole [Preemption and Rent Equalization in the Adoption of New Technology, Rev. Econ. Stud., 1985] on how preemption erodes the value of an option to wait raises general questions about the relation between models in discrete and continuous time and thus about...
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This paper develops and tests implications of an oligopoly-pricing model. The model predicts that during a demand … industries have fluctuations consistent with this oligopoly-pricing model …
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