Nikolaos Vettas

Foreign Direct Investment and Exports Dynamics with Demand Learning

Kotseva, Rossitsa, Vettas, Nikolaos

We model a firm's choice between exporting and investing in a foreign country in the presence of possibly persistent demand uncertainty. We allow for demand shocks that, while increasing expected...

Foreign Direct Investment and Exports with Growing Demand

Rafael Rob, Nikolaos Vettas

We explore entry into a foreign market with uncertain demand growth. A multinational can serve the foreign demand by two modes, or by a combination thereof: it can export its products, or it can...

Price Competition in a Differentiated Products Duopoly Under Network Effects

Griva, Krina, Vettas, Nikolaos

We examine price competition under product-specific network effects, in a duopoly where the products are differentiated horizontally and vertically. When consumers' expectations are not affected by...

Dynamic price competition with capacity constraints and strategic buyers

Gary Biglaiser, Nikolaos Vettas

We analyze a dynamic durable good oligopoly model where sellers are capacity constrained over the length of the game. Buyers act strategically in the market, knowing that their purchases may affect...

On Intrabrand and Interbrand Competition: The Strategic Role of Fees and Royalties

Saggi, Kamal, Vettas, Nikolaos

We examine oligopolistic markets with both intrabrand and interbrand competition. We characterize equilibrium contracts involving a royalty (or wholesale price) and a fee when each upstream firm...

On the Informational Role of Quantitites: Durable Goods and Consumers' Word-of-Mouth Communication

Vettas, Nikolaos

A dynamic incomplete information game is set up to study the introduction of a durable good when consumers can learn the quality of the good from previous buyers. High sales today imply fewer...

Investment Dynamics in Markets with Endogenous Demand.

Vettas, Nikolaos

I examine entry into markets where demand is an increasing function of past sales because of learning, networks, or fashion. Demand is initially unknown (with firms learning in Bayesian fashion) and...

Pricing, Investments and Mergers with Intertemporal Capacity Constraints

Christou, Charalambos, Kotseva, Rossitsa, Vettas, Nikolaos

We set up a duopoly model with dynamic capacity constraints under demand uncertainty. We endogenize the investment decisions of the firms, examine their intertemporal pricing behavior, their...

Foreign Direct Investment and Exports with Growing Demand

Rafael Rob, Nikolaos Vettas

We explore entry into a foreign market with uncertain demand growth. A multinational can serve the foreign demand by two modes, or by a combination thereof: it can export its products, or it can...

On the Informational Role of Quantities: Durable Goods and Consumers' Word-of-Mouth Communication.

Vettas, Nikolaos

A dynamic incomplete information game is set up to study the introduction of a durable good when consumers can learn its quality from previous buyers. High sales today imply fewer potential buyers...

Demand and Supply in New Markets: Diffusion with Bilateral Learning

Nikolaos Vettas

I explore the endogenous joint evolution of demand and supply in new markets. Firms and consumers learn, in a Bayesian fashion, by observing the behavior of other firms and consumers, respectively....

Strategic Pricing and Entry under Universal Service and Cross-Market Price Constraints

Anton, James J., Vander Weide, James H., Vettas, Nikolaos

Recent changes in telecommunications markets raise the issue of how price restrictions across markets impact strategic entry and pricing decisions. The Telecommunications Act of 1996 opens all...

Investment Dynamics in Markets with Endogenous Demand

Vettas, Nikolaos

In several interesting markets, demand is an increasing function of past sales because of learning, network externalities, or fashion. This paper examines entry into such markets. The two key...

Leasing versus Selling and Firm Efficiency in Oligopoly

Saggi, Kamal, Vettas, Nikolaos

We examine sales and leasing of a durable good in an asymmetric duopoly. We find that inefficient firms tend to lease more. While the low cost firm sells more than the high cost firm, the high cost...

Location and Product Quality

Vettas, Nikolaos

We examine a horizontal product differentiation duopoly model where firms are also differentiated with respect to the quality of their products. Firms first choose their locations and then compete in...

Entry and Exit Under Demand Uncertainty

Vettas, Nikolaos

This paper presents a dynamic model of entry and exit in competitive markets with demand uncertainty and Bayesian learning. There is a unique equilibrium path characterized by a pair of simple...

Demand and Supply in New Markets: Diffusion with Bilateral Learning

Vettas, Nikolaos

This paper explores the endogenous joint evolution of demand and supply in new markets. Firms and consumers learn, in a Bayesian fashion, by observing the behavior of other firms and consumers,...

Entry to New Markets with Endogenous Demand

Vettas, Nikolaos

In several interesting markets, demand is an increasing function of past sales, because of learning, network externalities, or "fashion." This paper examines entry into such markets where demand is...

Entry, Exit and Coordination with Mixed Strategies

Vettas, Nikolaos

A dynamic entry and exit game is studied, where, following Dixit and Shapiro (1986), firms play symmetric mixed strategies. Due to coordination considerations, the value of incumbency is increasing...

Strategic Pricing and Entry under Universal Service and Cross-Market Price Constraints

Anton, James J, Vander Weide, James H, Vettas, Nikolaos

In this paper, we examine how cross-market price restrictions impact strategic entry and pricing decisions. A motivating example is the 1996 Act in the United States which opens telecommunications...

Investment Dynamics in Markets with Endogenous Demand

Vettas, Nikolaos

In several interesting markets, demand is an increasing function of past sales because of learning, network externalities or fashion. This paper examines entry into such markets. The two key elements...

On Intrabrand and Interbrand Competition: The Strategic Role of Fees and Royalties

Saggi, Kamal, Vettas, Nikolaos

We examine oligopolistic markets with both intrabrand and interbrand competition. We characterize equilibrium contracts involving a royalty (or wholesale price) and a fee when each upstream firm...

Location as a Signal of Quality

Vettas, Nikolaos

We examine a horizontal product differentiation duopoly model where firms are also differentiated with respect to the quality of their products. Firms first choose their locations (or product...

Foreign Direct Investment and Exports with Growing Demand

Rob, Rafael, Vettas, Nikolaos

We explore entry into a foreign market with uncertain demand growth. A multinational can serve the foreign demand in two ways, or by a combination thereof: it can export its product, or it can create...

Informative Advertising and Product Differentiation

Christou, Charalambos, Vettas, Nikolaos

We study informative advertising within a random-utility, non-localized competition model of product differentiation. In a symmetric equilibrium, advertisement is sub-optimal when product...

Endogenous Contracts Under Bargaining in Competing Vertical Chains

Milliou, Chrysovalantou, Petrakis, Emmanuel, Vettas, Nikolaos

We investigate the endogenous determination of contracts in competing vertical chains where upstream and downstream firms bargain first over the type of contract and then over the contract terms....

Dynamic Price Competition with Capacity Constraints and Strategic Buyers

Biglaiser, Gary, Vettas, Nikolaos

We analyse a set of simple dynamic models where sellers are capacity constrained over the length of the model. Buyers act strategically in the market, knowing that their purchases may affect future...

Location Choices under Quality Uncertainty

Christou, Charalambos, Vettas, Nikolaos

We examine a linear city duopoly where firms choose their locations to maximize expected profits, uncertain about how consumers will assess the relative quality of their products. Equilibrium...

Pricing, Investments and Mergers with Intertemporal Capacity Constraints

Charalambos Christou, Rossitsa Kotseva, Nikolaos Vettas

We set up a duopoly model with dynamic capacity constraints under demand uncertainty. We endogenize the investment decisions of the ?rms, examine their intertemporal pricing behavior, their...