Examining a state-dependent pricing model in the presence of menu costs and dynamic duopolistic interactions, this paper claims that the assumption regarding market structure is crucial for iden- tifying the menu costs for price changes. Prices in a dynamic duopolistic market can be more rigid...

Scrutinizing a state-dependent pricing model in the presence of menu costs and dynamic duopolistic interactions, this paper claims that the assumption about market structure is crucial for identifying menu costs for price changes. Prices in a dynamic duopoly market can be more rigid than those...

This paper advances our collective knowledge about the role of learning in retail agglomeration. Uncertainty about new markets provides an opportunity for sequential learning, where one firm's past entry decisions signal to others the potential profitability of risky markets. The setting is...