We use a variant of the Hotelling (1929) model to illustrate that, when a firm faces hard payment constraint(s), financially strong rivals may adopt predatory strategies to drive the firm out of the product market and hence to obtain extra profit from enhanced market power later on. Predation is...

We consider the optimal licensing strategy of an insider patentee in a circular city of Salop’s model and in a linear city of Hotelling’s model when firms have asymmetric pre-innovation marginal costs of production and compete in prices. We completely characterize the optimal licensing...

I develop a simple Hotelling model which relates the distribution of consumer preferences to the intensity of competition. I impose two properties, mean preserving spread (MPS) and monotone likelihood ratio property (MLRP), on distribution functions. These properties provide a way to represent...

This paper compares patent licensing regimes in a Hotelling model where firms are located symmetrically and not necessary at the end points of the city. I suppose that one of the firms owns a process innovation reducing the marginal unit cost. This patent holding firm will decide to sell a...

I study the self-selection of motivated teachers between public and private schools in a mixed duopoly environment. The quality is influenced by the effort exerted by the teachers. Teachers' motivation may have a positive impact on the levels of effort and, then, on the quality. The effect of...

This paper analyzes the long run association between Pakistan’s exports and imports from 1972 to 2012. The results of both the Engle and Granger (1987) and Johansen (1991, 1995) cointegration reveal a long run relationship between the two variables. The error correction model results...

This paper investigates Bertrand competition of unionized mixed duopoly when the public firm is less efficient than the private firm, including endogenous imposition of the budget constraint on the public firm. Thus, we show that if the public firm's inefficiency is sufficiently small, no...

The evaluation of policy actions by means of a large scale econometric model often begins with the analysis of multipliers. A large value of a multiplier, with the right sign, suggests that the policy instrument should be very effective in moving up or down the given target variable. However,...

The paper is concerned with the efficient organization of contractual relationships between health insurers and providers. An introduction to relevant aspects of contract theory is followed by their adaptation to the characteristics of the health care system. The focus lies on an ex ante...