We analyze the impact of overconfidence on the timing of entry in markets, profits, and welfare using an extension of … rational. We find that for slight levels of overconfidence and intermediate cost asymmetries, there is a unique cost …-dependent equilibrium where the overconfident player has a higher ex-ante probability of being the Stackelberg leader. Overconfidence lowers …

This paper analyzes the impact of overconfidence on the timing of entry in markets, profits, and welfare. To do that … overconfident player provided that cost asymmetries are small. Finally, we show that overconfidence reduces welfare, except when …

We analyze industrial espionage in the context of entry deterrence. We consider a monopoly incumbent, who may expand … capacity to deter entry, and a potential entrant who owns an inaccurate Intelligence System. The Intelligence System generates …

We analyze the effect of industrial espionage on entry deterrence. We consider a monopoly incumbent who may expand … capacity to deter entry, and a potential entrant who owns an Intelligence System. The Intelligence System (IS) generates a …

Traditional economic wisdom says that free entry in a market will drive profits down to zero. This conclusion is … of insufficient entry. The mere fact that it will not become common knowledge that every entrant has perfect information …