Entrants often need to make considerable sunk investments whose returns are highlyuncertain. The option to exit the market if returns are low helps to reduce investment risksand can be an important impetus to investment. We examine the interaction between exitpolicy and up-front investment by...

Due to the switching behavior of online consumers, news outlets increasingly compete with each other to attract audience for each single news item they produce, rather than for complete editions of their newspapers: the so called unbundling of journalism. Using a standard Hotelling duopoly model...

Motivated by a recent competition policy debate on retailers' collusion in online marketplaces, this paper studies a simple model to shed light on the competitive and welfare effects of this conduct. I find that, when retailers sell their products through a monopolistic e-commerce platform,...

We develop a framework to explore the equilibrium implications of socially responsible investments (SRI). Investors acquire positions in ex-ante identical firms, and firms compete in selling products to consumers. A fraction of investors and consumers are socially responsible in that they value...