We analyze a model where a multinational firm can use its superior technology in a foreign subsidiary only after appropriate training of local managers. Technological spillovers from foreign direct investment arise when such managers are later hired by a local firm. Benefits for the host economy...

I show that an advertising ban is more likely to increase -- rather than decrease -- total consumption when advertising does not bring about a large expansion of market demand at given prices and when it increases product differentiation (thus allowing firms to command higher prices). In this...

We study managerial incentives in a model where managers take not only product market but also takeover decisions. We show that the optimal contract includes an incentive to increase the firm's sales, under both quantity and price competition. This result is in contrast to the previous...

Coordination games arise very often in studies of industrial organization and international trade. This type of games has multiple strict equilibria, and therefore the identification of testable predictions is very difficult. We study a vertical product differentiation model with two asymmetric...

D'Aspremont and Jacquemin's (1988) model is extended to study alternative configurations of research agreements in a two--country integrated world economy. Under unambiguous conditions on spillovers we show that: 1) Allowing national firms to cooperate in R\&D confers them an advantage over...

In a world with two countries which differ in size, we study the impact of (the speed of) trade liberalization on firms' profits and total welfare of the countries involved. Firms correctly anticipate the pace of trade liberalization and take it into account when deciding on their product...