The authors develop a Cournot oligopoly model of an industry with a potential entrant. Entry into the industry can be effected either directly or through acquisition of an incumbent. They establish the existence of an equilibrium in which the types of potential entrant differentiate themselves...

Embedding the process of selling an asset in a search environment enables one to provide an exact definition of liquidity: an asset's liquidity is the expected time until it is sold while pursuing an optimal (in the sense of maximization of expected discounted net proceeds) policy. This analysis...

A search model is employed to analyze the choice between posting a price and bargaining for the seller of an asset who is imperfectly informed about both buyer valuations and buyer bargaining abilities. A mean preserving increase in risk of buyer valuations is relevant, and beneficial, to the...