We study domestic entry into an established durable good industry under imperfect information. Prior to making a costly entry decision, entrepreneurs observe their true type profitability only with some (common) noise. We consider policy when the government has finer information than firms about...

The study of dynamic strategic behavior in international trade environments with imperfect factor markets (unions) yields significantly different policy implications compared to those that obtain under static settings. We find that contrary to static equilibria, the equilibrium of our model...