Two TV channels compete on programming with respect to both time schedule (continuous choice) and programme progile (discrete choice), with a directional constraint concerning time schedule (viewers cannot watch TV before they get home). We show how the relative importance of programme progile...

This paper explores how costly price adjustment and strategic interaction may cause a leader-follower configuration to arise. While most imperfect models predict that price-setters will synchronize their moves, we show that leadership generates stable staggering.