We study the introduction of new products in a vertically differentiated industry. Innovative firms have to engage into reducing time-to-market investments in order to shorten the time interval between innovation and sales. Still, these investments generate irreversible costs which have to be...

We document entry and capacity expansion in US long-distance fiber-optic networks before and during the "telecom boom." We disentangle the many swaps and leases between networks in order to measure owned route miles versus route miles shared with other carriers. Entry appears much more moderate...

The article examines a differentiated-products duopoly model where the firms make entry decisions to two markets and then choose prices. The effects of product differentiation and entry costs are analyzed in two games: with and without price discrimination between the markets. Allowing price...

We present a theory of entrepreneurial entry and exit decisions. Knowing their own managerial talent, entrepreneurs decide which market to enter, where markets differ in size. We obtain a striking sorting result: each entrant in a large market is more efficient than any entrepreneur in a smaller...

We examine the effects of overlapping ownership in a Cournot oligopoly with free entry. If firms develop overlapping ownership only after entering, then an increase in the degree of overlapping ownership spurs entry but causes price to increase and total surplus to fall. Also, entry is never...

In many industries firms can enter into new markets either by building a new plant (greenfield entry) or by acquiring an existing incumbent facility. The structural empirical literature on entry has usually ignored acquisitions as an option for entrants. Understanding what drives this decision...

We consider market dynamics in a reduced form model. In the simplest version, there are two investors and several small non-investing firms. In each period, one investor can acquire a small firm, the other investor decides about market entry. After that all firms play an oligopoly game. We...

We analyze the effect of Wal-Mart's entry into the grocery market using a unique store-level price panel data set. We use OLS and two IV specifications to estimate the effect of Wal-Mart's entry on competitors' prices of 24 grocery items across several categories. Wal-Mart's price advantage over...

We present a theory of entrepreneurial entry and exit decisions. Knowing their own managerial talent, entrepreneurs decide which market to enter, where markets differ in size. We obtain a striking sorting result: each entrant in a large market is more efficient than any entrepreneur in a smaller...

The model considers a seller operating under the threat of an arbitrarily large number of unknown potential entrants and facing a strategic buyer. It is shown that the seller's Nash best response function slopes downward in price-output space, while that of the buyer slopes upward. The Nash...