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Technology, Market Structure and the Gains from Trade
Impullitti, Giammario; Licandro, Omar; Rendahl, Pontus - 2021
We study the gains from trade in a model with oligopolistic competition, heterogeneous firms and innovation, and … concentration contributes substantially to the gains from trade, mostly via its stimulating effect on innovation. Sizeable gains …
Persistent link: https://www.econbiz.de/10013231972
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Learning from Failures : Optimal Contract for Experimentation and Production
Khalil, Fahad - 2019
Before embarking on a project, a principal must often rely on an agent to learn about its profitability. We model this learning as a two-armed bandit problem and highlight the interaction between learning (experimentation) and production. We derive the optimal contract for both experimentation...
Persistent link: https://www.econbiz.de/10012892041
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Quadratic Costs, Innovation and Welfare : The Role of Technology
Marjit, Sugata - 2020
In a Cournot oligopoly set up with constant marginal cost and linear demand, innovation is rewarding. In this paper we … work with a Cournot oligopoly framework with increasing marginal cost and linear demand and show that innovation may not be … interaction we attempt to capture and explain is the one of technology with the possibility of innovation via the intensity of …
Persistent link: https://www.econbiz.de/10012824572
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Signaling and Employer Learning with Instruments
Aryal, Gaurab - 2020
The social and the private returns to education differ when education can increase productivity, and also be used to signal productivity. We show how instrumental variables can be used to separately identify and estimate the social and private returns to education within the employer learning...
Persistent link: https://www.econbiz.de/10012841583
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Learning from Law Enforcement
Dusek, Libor - 2020
This paper studies how punishment for past offenses affects future compliance behavior and isolates deterrence effects mediated by learning. Using administrative data from speed cameras that capture the full driving histories of more than a million cars over several years, we evaluate responses...
Persistent link: https://www.econbiz.de/10012843418
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Learning and Information Transmission within Multinational Corporations
Chen, Cheng - 2020
We propose that multinational firms learn about their profitability in a particular market by observing their performance in nearby markets. We first develop a model of firm expectations formation with noisy signals from multiple markets and derive predictions on expectations formation and...
Persistent link: https://www.econbiz.de/10012825991
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Social Learning and Solar Photovoltaic Adoption
Gillingham, Kenneth - 2020
A growing literature points to the effectiveness of leveraging social interactions and nudges to spur adoption of pro-social behaviors. This study investigates a large-scale behavioral intervention designed to actively leverage social learning and peer interactions to encourage adoption of...
Persistent link: https://www.econbiz.de/10012827672
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Heterogeneity in Individual Expectations, Sentiment, and Constant-Gain Learning
Cole, Stephen J. - 2020
The adaptive learning approach has been fruitfully employed to model the formation of aggregate expectations at the macroeconomic level, as an alternative to rational expectations. This paper uses adaptive learning to understand, instead, the formation of expectations at the micro-level, by...
Persistent link: https://www.econbiz.de/10012831652
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Private Information and Optimal Infant Industry Protection
Ravikumar, B.; Riezman, Raymond G.; Zhang, Yuzhe - 2022
We study infant industry protection using a dynamic model in which the industry’s cost is initially higher than that of foreign competitors. The industry can stochastically lower its cost via learning by doing. Whether the industry has transitioned to low cost is private information. We use a...
Persistent link: https://www.econbiz.de/10014082794
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Uncertainty in Global Sourcing : Learning, Sequential Offshoring, and Selection Patterns
Larch, Mario; Navarro, Leandro - 2022
We analyse firms’ sourcing decisions under institutional uncertainty in foreign countries. Firms can reduce their uncertainty by observing offshoring firms’ behaviour. The model characterises a sequential offshoring equilibrium path, led by the most productive firms in the market. With...
Persistent link: https://www.econbiz.de/10014242796