This paper investigates whether government support can act to increase exporting activity. We use a uniquely rich data set on Irish manufacturing plants and employ an empirical strategy that combines a non-parametric matching procedure with a difference-in-differences estimator in order to deal...

For most multi-period decision-making problems, it is generally well-accepted that the influence of information about later periods on the optimal decision in the current period reduces as we move farther into the future. If and when this influence reduces to zero, the corresponding problem...

We examine a linear city duopoly where firms choose their locations to maximize expected profits, uncertain about how consumers will assess the relative quality of their products. Equilibrium locations depend on the ratio of the expected quality superiority to the strength of horizontal...

We study informative advertising within a random-utility, non-localized competition model of product differentiation. In a symmetric equilibrium, advertisement is sub-optimal when product differentiation is small, and excessive otherwise. Increasing the number of firms may increase or decrease...

We examine the differential effects of financial status and exporting activity on the likelihood of survival for firms in the UK and France - two countries with different financial systems. We aim to answer two main questions: What is the direct impact of financial characteristics and different...

Using firm-level data for the UK, we investigate the link between firms’ financial health, borrowing ratio and export exit, paying special attention to the recent financial crisis. Our results show that deterioration in the financial position of firms has increased the hazard of export exit...

This paper examines whether exporting activity matters for firm's price cost margins. The recent literature on exporting and productivity shows that exporters on average are more efficient than nonexporters. If that is the case we may also expect them to have different mark-ups. We investigate...

We examine a horizontal product differentiation duopoly model where firms are also differentiated with respect to the quality of their products. Firms first choose their locations (or product characteristics) and then compete in prices. Under full information, it is shown that, whereas the...

Recent years have witnessed an enormous amount of reorganization of the corporate sector in the US and in Europe. This paper examines the role of market competition for this trend in corporate reorganization. We find that at intermediate levels of competition the CEO of the corporation decides...

In this paper, we examine how cross-market price restrictions impact strategic entry and pricing decisions. A motivating example is the 1996 Act in the United States which opens telecommunications markets to competition and contains a provision for universal service, requiring that advanced...