. This suggests that a …rms cash ow has an important e¤ect on its competitive outcomes in the product market. The e¤ects are robust to a number of estimation issues and identi…cation choices. Since the shock is exogenous to the investment opportunities of non-tobacco industries, my evidence supports

. This paper and the others in this symposium explore the economics of such systems. Market competition between systems, as opposed to market competition between individual products, highlights at least three important issues: expectations, coordination, and compatibility. A recent wave of research has focused

The insight of Arrow [4] and Debreu [7] that uncertainty is easily incor-porated into general equilibrium models is double-edged. It is true that one need only index commodities by the state of nature, and classical results on the existence and optimality of competitive equilibria can be made to

Economic theorists traditionally banish discussions of infor-mation to footnotes. Serious consideration of costs of communication,

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-period alternating offer, and dictator games; games where reciprocity is thought to play a role, such as the prisoner’s dilemma and the gift exchange game; and games where competitive behavior is observed, such as Bertrand and Cournot markets, and the guessing game.

This paper studies the implications of consumer reference dependence for market competition. If consumers take some product (e.g., the first product they consider) as the reference point when evaluating others and exhibit loss aversion, then the more “prominent ” firm whose product is taken

This paper reviews much of the scientific literature on the market for corporate control. The evidence indicates that corporate takeovers generate positive gains, that target firm shareholders benefit, and that bidding firm shareholders do not lose. The gains created by corporate takeovers do