We present two models of the greenfield-FDI, R&D and entry decisions of rival firms in an international oligopoly. Specifically, we develop a blockaded-entry (BE) two-stage game as a benchmark: in the first stage, the two incumbents choose whether to undertake greenfield-FDI or R&D (or both); in...

We survey the recent empirical literature on structural models of market entry and spatial competition in oligopoly retail industries. We start with the description of a framework that encompasses various models that have been estimated in empirical applications. We use this framework to discuss...

This paper provides a dynamic game of market entry to illustrate entry dynamics in an uncertain market environment. Our model features both private learning about the market condition and market competition, which give rise to the first-mover and second-mover advantages in a unified framework....

In this paper we investigate a two-period Bertrand-Edgeworth oligopoly model in which two capacity-constrained firms (incumbents) compete facing future demand uncertainty as well as uncertainty about entry. These firms must choose between pricing low and secure sales in the first period or,...

This paper develops a tractable model for the computational and empirical analysis of infinite-horizon oligopoly dynamics. It features aggregate demand uncertainty, sunk entry costs, stochastic idiosyncratic technological progress, and irreversible exit. We develop an algorithm for computing a...

We analyze the effects of asymmetric switching costs on two identical firms that produce an homogeneous good and compete in prices. Both firms inherit a fraction of the market which is “locked-in” by the switching costs. When switching costs are low, firms face a tradeoff between charging a...

This paper provides a new point identification and estimation for two-player entry games with complete information under a symmetric condition on unobservables. Neither equilibrium selection nor distributional assumption is required. In addition, a weaker support condition is used in comparison...

In some Bayesian games, payoff-relevant states are influenced by unobserved heterogeneity that also directly affects strategic decisions. When ignored, such endogeneity leads to erroneous parameter inference and policy implications. We introduce a control-function approach for estimating such...

This paper investigates how video game publishers’ choice of game release date is affected by the expected level of competition within the game’s product niche. We identify game niches by genre, age-appropriateness, a four week window cohort, publisher and console system. Our analysis is...

This paper develops an econometric model of industry dynamics for concentrated markets that can be estimated very quickly from market-level panel data on the number of producers and consumers using a nested fixed-point algorithm. We show that the model has an essentially unique symmetric...