This article presents estimates of the potential social losses caused by market failure in oil exploration in the Rainbow-Zama region of Alberta. We construct models that predict exploratory drilling for noncooperative Nash equilibrium with and without taxes, and for the social optimum. In the...

In this article we present a model of a market which is ex post contestable. We show that in a market characterized by uncertainty a firm will face a tradeoff between efficiency and flexibility and generally will make some precommitments to take advantage of ex ante technologies. We show that in...

In this article we investigate the incentive to merge when firms that produce differentiated products engage in price competition. We demonstrate that mergers of any size are beneficial and are so increasingly: large mergers yield higher profits than smaller ones. This is in contrast to the...

By presenting a geometric analysis of a duopoly, this article attempts to provide some insights into recent results by Singh and Vives regarding Bertrand and Cournot equilibria and the relative dominance of price and quantity strategies. It shows that under fairly general and reasonable...

In this article we develop a dynamic model of household vehicle ownership and utilization behavior by using data that were generated before, during, and after the 1979 energy crisis. The principal empirical findings are that households have maintained a distinct preference for American over...

This article analyzes oligopoly interaction in an environment where firms are imperfectly informed about the evolution of the market demand curve. The analysis develops a two-period Cournot framework under the assumptions that demand shifts are positively serially correlated, that firms never...

It is often argued that incumbent firms may deter entry by preemptive investment in new goods. We show that these conclusions are reserved when multiproduct incumbent firms may exit in response to entry. Once entrants are in an industry, an incumbent will often want to withdraw some goods to...

This article examines intertemporal price variations to provide a theoretical explanation for them. When firms have only incomplete information about consumers' reservation prices for the commodity, we contend that some intertemporal price variations can result from attempts by firms to...

This article examines the incentives for Cournot oligopolists to share information about a common parameter or about firm-specific parameters. We assume that the private information that firms receive has equal accuracy and obeys a linear conditional expectation property. We find that when the...

This article analyzes licensing in a noncooperative R&D game. We ask two questions: What are the incentives for licensing a production technology and what is the impact of licensing on the pattern of innovation and the consequent evolution of industry costs and market structure? The gains from...