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...

We study the competitive effects of a vertical merger in a digital industry where an integrated incumbent (closed ecosystem) competes with an open ecosystem formed by an upstream supplier (ecosystem gatekeeper) and two downstream retailers selling differentiated products. Absent innovation, the...

We consider a three-level supply chain where a monopolistic seller distributes its product both directly through its own distribution channel and indirectly through platforms accessed by intermediaries competing for final consumers. In this setting, we examine the welfare effects of platform...

We study the competitive and welfare effects of wholesale price-parity agreements. These contracts prevent a monopolist, who sells its product to final consumers both directly and indirectly through alternative distribution channels, to charge different input (wholesale) prices to competing...

In a Cournot industry where firms are privately informed about their marginal costs, raising entry barriers (i.e., imposing strictly positive, but not too large, entry costs) increases expected output, entrants' profits, total welfare, and might benefit consumers. Under Bayes-Cournot...

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...