This discussion paper led to an article in <I>Games and Economic Behavior</I> (2012), pp. 120-138.<P> We consider an oligopolistic market where firms compete in price and quality and where consumers are heterogeneous in knowledge: some consumers know both the prices and quality of the products offered,...</p></i>

Firms signal high quality through high prices even if the market structure is highly competitive and price competition is severe. In a symmetric Bertrand oligopoly where products may differ only in their quality, production cost is increasing in quality and the quality of each firm’s product...

In this paper we investigate whether markets with heterogeneous network externalities can belocked-in by old technologies even if superior technologies are available. Heterogeneous networkexternalities are present when some consumers care more about the size of the market share of agood than...

In pursuit of innovation, developing countries play an increasingly relevant role for multinational pharmaceutical firms. Driven partly by cost considerations but also by some host country-specific scientific and technological factors, global drug companies increasingly relocate part of their...

This paper investigates the influence of human resource management on learning from internal and external sources of knowledge. Learning for innovation is a key ingredient of catching-up processes. The analysis builds on survey data about pharmaceutical firms in Mexico. Results show that the...