We study the introduction of new products in a vertically differentiated industry. Innovative firms have to engage into reducing time-to-market investments in order to shorten the time interval between innovation and sales. Still, these investments generate irreversible costs which have to be...

This note summarizes and updates our previous survey of the economics of digital piracy (Belleflamme and Peitz, 2012).

This paper proposes a real option capacity expansion model for power generation with several technologies that differ in operation and investment costs. The economy is assumed perfectly competitive and the instantaneous payoff accruing from the generation system is the instantaneous welfare...

We develop a model of monopolistic competition that accounts for consumers' heterogeneity in both incomes and preferences. This model makes it possible to study the implications of income redistribution on the toughness of competition. We show how the market outcome depends on the joint...

This paper is an attempt to develop a unified approach to endogenous heterogeneity by constructing general class of two-player symmetric games that always possess only asymmetric pure-strategy Nash equilibria. These classes of games are characterized in some abstract sense by two general...

Following the model-based approach of Ellison and Glaeser (1997), we develop a framework to test for the link between concentration, spatial clustering and the size of plants. Concentration is an a-spatial concept of variability that can be measured with the standard locational Gini or the more...

A free entry model with linear costs is considered where firms first choose their entry time and then compete in the market according to the resulting timing decisions. Multiple equilibria arise allowing for infinitely many industry outputconfigurations encompassing one limit-output dominant...

In the theoretical literature, strong arguments have been provided in support of the efficiency defense in antitrust merger policy. One of the most often cited results is due to Williamson (1968) that shows how relatively small reduction in cost could offset the deadweight loss of a large price...

This paper analyses and compares the dynamics of agglomeration in Portuguese and Irish manufacturing industries between 1985 and 1998 implementing Dumais, Ellison and Glaeser (2002) methodology. Using comparable and exhaustive micro-level data sets, we find that s industries tend to be subject...

The aim of this paper is to test the predictions of Sutton's model of independent submarkets for the Italian retail banking industry. This industry, in fact, can be viewed as made of a large number of local markets corresponding to different geographical locations. In order to do that, I first...