This paper empirically studies how consumers respond to retail gasoline price cycles. Our analysis uses new station-level price data from local markets in Ontario, Canada, and a unique market-level measure of consumer responsiveness based on web traffic from gasoline price reporting websites. We...

In this paper we establish a complete characterization of the strategic interaction of firms in sequential entry models. The limit price plays an important coordinating role in non-cooperative sequential entry models. We show that for many firms in a large range of sequential entry equilibria,...

It is shown that steady state Markov perfect equilibria of discrete time, infinite horizon, quadratic, adjustment cost games differ from equilibria of their infinitely repeated counterpart games with zero adjustment costs even though no adjustment costs are paid in the steady state. In contrast...

A puzzle in the analysis of trade policy is why free trade outcomes, which maximize world income, are not more often observed. One reason is that economics agents with special interests affect both the form and level of international protective policies. This paper investigates the dynamic...

This paper surveys the recent literature on strategic entry deterrence. Particular attention is paid to limit pricing, entry deterrence models using a two-stage framework, incomplete information treatments of entry deterrence and entry deterrence as a framework for modeling the determination of...

Empirical evidence suggests that past levels of protection are significant determinants of current levels of protection. We investigate dynamic interactions among interest groups and resulting endogenous links between current and future trade policies. We explore these intertemporal links in a...