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Investment Tournaments : When Should a Rational Agent Put All Eggs in One Basket?

Schwarz, Michael - 2009

In this paper we study "investment tournaments," a class of decision problems that involve gradual allocation of investment among several alternatives whose values are subject to exogenous shocks. The decision-maker's payoff is determined by the final values of the alternatives. An important...

Persistent link: https://www.econbiz.de/10013158033

Declining Competition and Investment in the U.S

Gutierrez Gallardo, German - 2017

competition is partly responsible for this phenomenon. We use a combination of natural experiments and instrumental variables to … establish a causal relationship between competition and investment. Within manufacturing, we show that industry leaders invest … and innovate more in response to exogenous changes in Chinese competition. Beyond manufacturing we show that excess entry …

Persistent link: https://www.econbiz.de/10012951875

Trust, Investment and Competition : Theory and Evidence from German Car Manufacturers

Calzolari, Giacomo - 2019

quality - but also with more competition among suppliers. Both associations hold only for parts involving comparatively … relationships involving higher trust, buyers are able to induce higher investment and more intense competition among suppliers - but …

Persistent link: https://www.econbiz.de/10012866364

The Causal Effects of Competition on Innovation : Experimental Evidence

Aghion, Philippe - 2014

In this paper, we design two laboratory experiments to analyze the causal effects of competition on step …-by-step innovation. Innovations result from costly R&D investments and move technology up one step. Competition is inversely measured by … that increased competition leads to a significant increase in R&D investments by neck-and-neck firms. Second, increased …

Persistent link: https://www.econbiz.de/10013056594

On the Efficiency of Competitive Electricity Markets with Time-Invariant Retail Prices

Borenstein, Severin; Holland, Stephen P. - 2021

The standard economic model of efficient competitive markets relies on the ability of sellers to charge prices that vary as their costs change. Yet, there is no restructured electricity market in which most retail customers can be charged realtime prices (RTP), prices that can change as...

Persistent link: https://www.econbiz.de/10013247631

Incomplete property rights and overinvestment

Amegashie, J. Atsu - 2009

I consider a model in which an asset owner must decide how much to invest in his asset mindful of the fact that an encroacher's valuation of the asset is increasing in the asset owner's investment. Due to incomplete property rights, the encroacher and asset owner engage in a contest over the...

Persistent link: https://www.econbiz.de/10010265975

Product market competition, investment and employment-abundant versus job-poor growth : a real options perspective

Chen, Yu-Fu; Funke, Michael - 2005

The role of product market reforms in achieving the objective of higher employment and growth has recently received much attention amongst academics. The aim of this paper is to analyse some of the channels through which cross-market effects come about and to assess their policy relevance. The...

Persistent link: https://www.econbiz.de/10010271923

Mobility and conflict

Bhattacharya, Sourav; Deb, Joyee; Kundu, Tapas - 2012

We study the role of inter-group differences in the emergence of conflict. In our setting, two groups compete for the right to allocate societys resources, and we allow for costly intergroup mobility. The winning group offers an allocation, that the opposition can either accept, or reject and...

Persistent link: https://www.econbiz.de/10010280829

A nested contest: Tullock meets the all-pay auction

Amegashie, J. Atsu - 2012

I present a two-player nested contest which is a convex combination of two widely studied contests: the Tullock (lottery) contest and the all-pay auction. A Nash equilibrium exists for all parameters of the nested contest. If and only if the contest is sufficiently asymmetric, then there is an...

Persistent link: https://www.econbiz.de/10010289358

Equilibrium unemployment and capital intensity under product and labor market imperfections

Kauppi, Heikki; Koskela, Erkki; Stenbacka, Rune - 2004

equilibrium unemployment. The relationship between the long-run unemployment and the intensity of product market competition is …

Persistent link: https://www.econbiz.de/10010261119