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A rising tide lifts all boats? Upward trend and a second-mover advantage

Author

Listed:
  • Alexander Matros
  • Vladimir Smirnov
  • Andrew Wait

Abstract

Steg (2022) notes that Smirnov and Wait (2021) holds only under an as- sumption of symmetry. Here we show that all the analysis for an asymmetric environment in Smirnov and Wait (2021) applies under the assumption that there is a positive trend in the local maxima of leader payo s. Moreover, this new assumption holds in all of the examples in the original paper, and is relevant in a broad range of economic scenarios.

Suggested Citation

  • Alexander Matros & Vladimir Smirnov & Andrew Wait, 2024. "A rising tide lifts all boats? Upward trend and a second-mover advantage," Working Papers 2024-19, University of Sydney, School of Economics.
    • Handle: RePEc:syd:wpaper:2024-19
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    File URL: http://econ-wpseries.com/2024/202419.pdf
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    References listed on IDEAS

    as
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    2. Flavio Menezes & Rohan Pitchford, 2004. "A model of seller holdout," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 24(2), pages 231-253, August.
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    Keywords

    timing games; second-mover advantage; preemption;
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