This paper examines the dynamically consistent price path for a new product monopolist, unable to commit to future prices, when consumers must incur setup costs of adopting the product. The authors find that setup costs give rise to a price path with introductory sales: along the path, periods...

The author studies a perfect-information, rational expectations Markov equilibrium for the situation where a monopolist extracts a nonrenewable resource that is converted to a durable good. Even if short-run extraction costs are constant, the Coase Conjectur e fails, provided that the...

This paper uses an integrated employer-employee data-set to answer two key questions: (i) What is the equilibrium amount of worker reallocation? (ii) How much does firm-level job reallocation affect worker reallocation? About 26% of workers who had previously exhibited a substantial degree of...