In this paper we study the behavior of rivals when there is a known probability of imminent entry. Experimental markets are used to collect data on pre- and post-entry production when there is an announced time of possible entry; some markets experience entry and other do not. In all pre-entry...

We analyze the impact of overconfidence on the timing of entry in markets, profits, and welfare using an extension of the quantity commitment game. Players have private information about costs, one player is overconfident, and the other one rational. We find that for slight levels of...

This paper evaluates how different lengths of entry regulation impact market structure and market performance using a dynamic structural model. We formulate an oligopoly model in the tradition of Ericson and Pakes (1995) and allow entry costs to vary over time. Firms have the opportunity to...

We focus on the estimation of market entry costs that are declining over time and evaluate their impact on competition and market performance. We employ a dynamic oligopoly model in which firms make entry, exit, and production decisions in the presence of declining entry costs and learning by...

In this article we propose an innovative way of delineating geographical markets based on easily accessible data. We apply this concept for the day care industry and investigate providers' location choices relative to local market characteristics to evaluate the widespread presumption that local...

In merger analysis and other antitrust settings, risk is often cited as a potential barrier to entry. But there is little consensus as to the kinds of risk that matter- systematic versus non-systematic and industry-wide versus firm-specific - and the mechanisms through which they affect entry. I...

The paper investigates dynamic linkages between entry and exit rates in Brazilian manufacturing in the context of 231 (4-digits) industries during the 1996-2005 period. The empirical analysis focuses on the estimation of a dynamic panel data for entry and exit rates and controls for the business...

We study how two distinct types of pre-entry experience - core technological experience and market-based complementary experience - affect post-entry performance in a new industry. We focus on the fit between capabilities generated through pre-entry experience and the preferences of...

Craigslist, a website that hosts job- and help-wanted ads, expanded rapidly across the states in the USA over a very short period of time, thereby changing abruptly the market structure faced by competing employment websites. We exploit this abrupt change to evaluate its impact on competing...