In this paper we develop a model to deal simultaneously with the holding of equipment and the choice of a level of usage. Based on individual data, our model deals with standard problems encountered in the empirical IO literature, i.e. price endogeneity, dimensionality of product sets and...

This paper offers interpretations and applications of the “fear of ruin” coefficient (Aumann and Kurz, 1977, Econometrica). This coefficient is useful for analyzing the behavior of expected utility maximizers when they face binary lotteries with the same worse outcome. Comparative statics...

We study a spatial competition model which is a variant of the celebrated Hotelling (1929) framework. One of the firm is a brick-and-mortar one while the other is on-line. Both firms sell the same product except that (constant) marginal costs may differ. Consumers going to the shop around the...