Endogenously Asynchronous Entries Into an Uncertain Industry

In the presence of demand uncertainty, a priori identical firms may voluntarily choose asynchronous timing of entries. We formulate a duopoly model where two firms compete during many marketing periods. To enter the market, each firm is required to make a long-term supply contract with retailers, which stipulates that the firm must supply a constant quantity each period. The state of demand is ex ante uncertain, and becomes observable a period after at least one firm's entry.