pricing, introductory offers, and price wars. Such 'competition for the market' or 'life-cycle competition' can adequately … replace ordinary compatible competition, and can even be fiercer than compatible competition by weakening differentiation …. More often, however, incompatible competition not only involves direct efficiency losses but also softens competition and …

trajectories for the production of a differentiated good. We find that competition in the market for technology induces licensing … of innovations, and that the number of licenses can be inefficiently large. A strong testable implication of our theory …

instrumenting is particularly important for estimating the effect of competition on the markup of the price leader. …

This Paper introduces a new way to measure competition based on firms' profits. Within a general model, we derive … conditions under which this measure is monotone in competition, where competition can be intensified both through a fall in entry … competition. …

We introduce a new measure of competition: the elasticity of a firm's profits with respect to its cost level. A higher … value of this profit elasticity (PE) signals more intense competition. Using firm-level data we compare PE with the most … popular competition measures such as the price cost margin (PCM). We show that PE and PCM are highly correlated on average …

microfoundations, the welfare consequences of rent seeking can be studied. In particular, I show that competition among rent seekers …

Competition has been modelled in economic literature in a number of ways. What do these different parameterizations of … competition have in common? For instance, it turns out that it is not always the case that a rise in competition reduces price … cost margins, industry wide profits or concentration. All parameterizations of competition, considered here, have two …

The Profit Elasticity (PE) is a new competition measure introduced in Boone (2008). So far, there was no direct proof … that this measure can identify regimes of competition empirically. This paper focuses on this issue using data of Genesove … and Mullin (1998) in which different regimes of competition are identified. We derive a version of PE suitable for this …