The literature has established two kinds of entry bias in imperfectly competitive markets. First, free entry may lead … firm) in the market compared to the socially optimal technology. This paper finds a product selection bias, a third kind of … entry bias. We show that, in a Cournot market with asymmetric firms and imperfectly substituting goods, free entry may lead …

"product replacement bias" and quantify its importance using U.S. microdata on import and export prices. We show that …, accounting for product replacement bias, long-run exchange rate "pass-through" into U.S. import and export price indexes is …