This paper considers an incumbent firm that is faced with a potential entrant in a vertically differentiated market. It demonstrates than an incumbent firm cannot prevent entry through product proliferation because of a commitment problem.

This paper analyzes the rationality of Japanese macroeconomic forecasters. It finds that Japanese individual forecasters are pessimistic in boom and optimistic in recession, and that they over-react to new information. Across forecasters, the magnitude of average forecast revisions is not...