+ Examples from the casino, airline, and pharmaceutical industries

Lecture

1. Cournot model
2. Stackelberg model
3. Limit price model of entry deterrence
4. Dixit (1980) model of entry deterrence

You can also refer to the textbook of Pepall et al. (2014), pp. 222-228, 265-268, 289–299.

Seminar

• Homework for all:  Carefully read the introduction of Cookson (2018). You should be able to answer questions about the main story of the paper (from your memory).
• Projects:
  • Task 1: Replicate the empirical analysis of Cookson (2018) (see the attached data and code in R. It is forbidden to share the data, especially to upload it to ChatGPT). Using RStudio (or equivalent), Markdown, or a presentation, go through the code and explain step-by-step how you created the main results (not necessary to discuss all tables and figures) of the paper.
  • Task 2:  Prepare a presentation (for around 15 mins) in which you summarize how incumbents in Goolsbee and Syverson (2008) and Ellison and Ellison (2011) recognize the threat of entry and how they react to it.
    Presentation by Barbora and Yauheniya