The idea that an industry with sunk costs may be contestable even in the absence of long-term contracts has received little attention from formal economic theory yet is popular among monopolists facing antitrust suits. The paper formally illustrates the argument. In an infinitely repeated game,...

The argument that import protection can become export promotion is examined from the marketing standpoint. The cornerstone of the analysis is the presence of horizontal differentiation. In the model, protection by the home government allows domestic firms to sell their products to the portion of...

We present a potentially benign naked exclusion mechanism that can be applied to sequential innovation; a non-patentable original innovation by the incumbent supplier fosters derivative innovation by rivals. In the absence of an appropriate legal framework, the original innovator's equilibrium...