We examine the consumer welfare effect of a firm's partial ownership of a competitor and compare the implications of alternative forms of divestiture. We identify conditions under which turning voting shares into non-voting shares is preferable to selling the shares to the firm's current...

I argue that dynamic oligopoly models are an area of industrial organization where much work needs to be done and much work can be done. In some particular settings (e.g., network industries), dynamic oligopoly models provide sensible answers when static models fall short of doing so.

I revisit the issue of aftermarkets by developing an infinite period model with overlapping consumers. If the aftermarket is characterized by constant returns to scale, then social surplus and consumer surplus are invariant with respect to aftermarket power. Under increasing returns to scale,...

The EU mandated a single standard for second generation wireless telecommunications, whereas the US allowed several incompatible standards to battle for market share. Motivated by this example, we argue that a single standard leads to a free riding problem, and thus to a significant decrease in...

Empirical evidence suggests that prices are sticky with respect to cost changes. Moreover, prices respond more rapidly to cost increases than to cost decreases. We develop a search theoretic model which is consistent with this evidence and allows for additional testable predictions. Our results...

Entrepreneurship, as reflected in industry turnover rates, is a central force behind output and productivity growth. However, cross country comparisons suggest that turnover rates are remarkably independent of barriers to business: Singapore, one of the most entry-friendly countries in the...

We provide a simple framework to analyze the effect of firm dominance on incentives for R&D. An increase in firm dominance, which we measure by a premium in consumer valuation, increases the dominant firm's incentives and decreases the rival firm's incentives for R&D. These changes influence the...