We study an endogenous business cycle model with Cournotian monopolistic competition and an endogenous number of firms in each sector. Our model is a simple general equilibrium macroeconomic model introducing overlapping generation both of consumers and firms. Firms strategically decide on...

In 1989, the United Kingdom Monopolies and Mergers Commission (MMC) recommended measures that eventually led brewers to divest themselves of 14000 public houses. The MMC claimed that their recommendations would lower retail prices and increase consumer choice. Since that time, however, retail...

In this paper, we develop a Schumpeterian discrete-time model of endogeneous growth with an explicit market for the resource used for innovation-creating investment, and study its global dynamics. We show, among others, that the level of investment may fluctuate chaotically for a compact range...

In the context of capital accumulation games this paper proposes two concepts that describe the interactions between agents and give a counterpart, in a symmetric infinite horizon framework, of the well known Fudenberg and Tirole's Taxinomy concerning investment strategies in two-stage games.

In economic two players games with negative (positive) spillovers it is well-known that symmetric agents both overact (underact) at the Nash Equilibria. We show that for heterogeneous agents this rule has to be amended if the game features strategic substituability.

Discounted-cash-flow (DCF) techniques form the basis of most corporate-investment decisions. Many practitioners, however, claim to be dissatisfied with traditional methods of appraisal. In this paper, we survey DCF and more recent methods of evaluating cyclical projects.