The new example is a technological race in which:
1) technology changes rapidly - deprecation probability is 0.78
2) winner takes it all - if you are in the high state you basically get 90% 
market share.
3) it's a natural monopoly - if there is a guy in high state you don't want to 
invest a lot.
It's sort of like search engine (google) story.

The punchline of the example I send you is that by using OE you miss MPE by a 
lot. Since there is no entry/exit the OE and MPE are exacly the same when it 
comes for primitives. That's why as we add more dominant firms we approximate 
MPE better.

In this example in really matters for people to have a firm in high state, so 
the consumer surplus jumps if there is a firm in high state. In the same time
investment deterrence is very strong since there can be only one winner.
In this case fringe has much less incentive to invest since it cannot signal 
the high state and deter investment.
In this case OE will miss MPE by a lot,  
both in HHI and consumer surplus (consumer surplus by almost 40%).
The firm distribution converges pretty fast once we add a dominant firm 
however with 1 dom firm consumer surplus is still 10% off from the MPE.
