We develop a contingent claims model of a firm in financial distress with a formal account for renegotiations under the Chapter 11 bankruptcy procedure. Shareholders and two classes of creditors (senior and junior) alternatively propose a reorganization plan subject to a vote. The bankruptcy...

This book provides readers with a comprehensive survey of models of dynamic games in economics, including an extensive coverage of numerous fields of applications. It will also discuss and explain main concepts and techniques used in dynamic games, and inform readers of its major developments...

This paper analyzes the literature concerning models of endogenous mergers. Traditional models of exogenous mergers analyze mergers as isolated phenomena. However, some empirical facts about M&A don’t seem to be explained in this literature. Models of endogenous mergers take into account all...

We determine the optimal response to competitive entry in a market characterized by a market share attraction model. The response of an incumbent is limited to changes in prices, advertising and distribution expenditures; brand positions are assumed to be fixed. We also assume that the entrant's...

In this paper the sensitivity of the optimal price path of a new durable product to the price expectations of consumers is examined. Consumers enter the market every period in a diffusion type framework. During the initial periods more consumers enter the market due to word of mouth influence,...

I provide a general formulation of the channel pass-through problem as a comparative static of the retail price equilibrium, and I analyze the impact of category management and retail competition on pass-through, focusing on brand and retailer differences, and the nature of the cost change being...

We ask the question, “when should the most highly skilled salespeople sell the best products?” Our main result is that the highly skilled reps should sell better products when the task is very complex and worse products when the task is very simple. This is shown using a general analytical...

In channel structures characterized by a powerful retailer (e.g., Wal-Mart, Home Depot), the dominant retailer's acceptance of a manufacturer's new product often determines the success of the new offering. Focusing on a manufacturer in such a market, we develop an approach to positioning and...