The seminal work of Fudenberg and Tirole [Preemption and Rent Equalization in the Adoption of New Technology, Rev. Econ. Stud., 1985] on how preemption erodes the value of an option to wait raises general questions about the relation between models in discrete and continuous time and thus about...

This article describes a characterisation of competitive market behaviour using the concepts of cointegration analysis. It requires all (n) firms to set prices to follow a single stochastic trend (equivalently the vector of n prices should have cointegrating rank n-1). This implies that, in the...

We investigate the nature of price competition among firms that produce differentiated products and compete in markets that are limited in extent. We propose an instrumental variables series estimator for the matrix of cross price response coefficients, demonstrate that our estimator is...