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It has recently been shown that the firm size distribution is initially skewed to the right and then evolves over time to become more lognormal, and argued that this is likely due to firms initially facing financial constraints, see Cabral and Mata (2003). We conjecture that, it this is true,...
Persistent link: https://www.econbiz.de/10005065439
investment in advertising and that strong product substitutability may induce a coordination problem. …
Persistent link: https://www.econbiz.de/10005008546
strategy literature. Our framework generalizes a number of models dealing with two-stage games, with long term investment … decisions in the first stage and product market competition in the second stage. We present the main examples that motivate this …
Persistent link: https://www.econbiz.de/10005042831
A duopoly model of cost reducing R&D-Cournot competition is extended to study the endogenous timing of R&D strategic … investment. Under the assumption that R&D spillovers only flow from the R&D leader to the follower, sequential and simultaneous …
Persistent link: https://www.econbiz.de/10005043434
the company. The result is a tax competition between countries. In this paper we consider the sequential choice of tax …
Persistent link: https://www.econbiz.de/10011228295
earlier than otherwise. We characterize the optimal investment policies under various assumptions concerning the market …
Persistent link: https://www.econbiz.de/10005043667
reconciled in a very general theoretical framework featuring firm-level heterogeneity and investment decision. Three main … elements determine the nature and the intensity of the relationship between firm-level size and investment: the shape of … operating profits with respect to size, the shape of marginal returns to investment (in terms of size) with respect to initial …
Persistent link: https://www.econbiz.de/10010610489
consumers. The regulator designs a mechanism that guarantees financing of the essential input and adequate competition in the …
Persistent link: https://www.econbiz.de/10005008615
In the framework of symmetric Cournot oligopoly, this paper provides two minimal sets of assumptions on the demand and cost functions that imply respectively that, as the number of firms increases, the minimal and maximal equilibria lead to (i) decreasing industry price and increasing or...
Persistent link: https://www.econbiz.de/10005779485
In market games the one to one correspondence between commodity types and trading posts would be justified if it were true that the set of equilibria is not affected by the number of trading posts postulated at the ouset of the model. We show that this is not true.
Persistent link: https://www.econbiz.de/10005478962