customers. The trade-off between these effects is influenced by competition. We use a model where the demand functions are …

experiment with skill-based payoffs by systematically varying two key elements of the market environment: demand risk and … expected market size. Results show that people's reactions to demand risk depend on the market size: in small markets people … inefficiencies in both cases: demand risk significantly amplifies overentry in small markets and underentry in large markets. Skill …

While the existing literature has studied the impact of demand uncertainty extensively within various monopoly settings …, there is little research on its impact among competitive retailers. In this paper, we study the effects of demand … expected profits in response to demand uncertainty reduction. We find that as one retailer’s demand uncertainty decreases, it …

. Equilibrium price dispersion is derived in a setting with costly capacity and demand uncertainty where different fares can be … find evidence that strongly supports both predictions of the models. After controlling for the effect of aggregate demand …

. Equilibrium price dispersion is derived in a setting with costly capacity and demand uncertainty where different fares can be … find evidence that strongly supports both predictions of the models. After controlling for the effect of aggregate demand …