considered an indicator of either information flow or uncertainty. We show in a stylized model economy that both views suggest … market, volatility reflects information (uncertainty). We introduce a simultaneous time-varying coefficient model, where …

How does demand uncertainty affect entry into skill-based competition? I investigate this question in a market entry … 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 …