to invest compared to autarky. The investment levels remain inefficient though. With generation facilities over-investment … occurs sometimes, while systematic under-investment occurs for transportation facilities. Free-riding reduces the incentives … investment. …

relationships involving higher trust, buyers are able to induce higher investment and more intense competition among suppliers - but …, we show that more trust in a relationship is associated with higher idiosyncratic investment by suppliers and better part … quality - but also with more competition among suppliers. Both associations hold only for parts involving comparatively …

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

We investigate the effect of competition on quality in regulated markets (e.g., health care, higher education, public … the open-loop solution (providers choose the optimal quality investment plan based on demand at the initial period) and … to the steady state. While fiercer competition (lower transportation costs or less sluggish demand) leads to higher …

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 control of the asset after investment has taken place. A standard result … is that the asset owner will underinvest in the asset relative to the first-best level of investment when property rights …

, pushing the private return below the social return. This induces substantial under-investment and causes output losses of up … to 22 percent. Value-added-based evidence from Swedish high school graduates also points to noise and under-investment …