We study the optimal regulation of complementary input supply. The regulator chooses for either a monopolist producing two complementary inputs in fixed proportion, or two independent firms producing one input each. Under independent input supply, non-monotonic regulatory schemes become optimal...

Inherent to most research projects is the fact that researchers learn about their project during the course of it. Research investments result in signals on development costs. This paper studies how this fact influences firms' investments, and how revenue sharing can correct inefficient...

Firms in an R&D race actively manage rivals’ beliefs by disclosing and concealinginformation on their cost of investment. The firms’ disclosure strategies affect theirincentives to invest in R&D, and to acquire information. We compare equilibria undervoluntary disclosure with those under...

We study the incentives of Cournot oligopolists to acquire and disclose information on a common cost (or demand) parameter. Since information acquisition is such that firms may fail to acquire information, firms can credibly conceal unfavorable news while disclosing favorable news. This paper...

Firms learn imperfectly about their cost of investment. We study how this information affects firms' incentives to invest in R&D by comparing investments and profits under public and private information. Revenue sharing between the winner and loser of the race, e.g. through licensing contracts,...

Firms in an R&D race actively manage rivals’ beliefs by disclosing and concealinginformation on their cost of investment. The firms’ disclosure strategies affect theirincentives to invest in R&D, and to acquire information. We compare equilibria undervoluntary disclosure with those under...

This paper gives conditions under which vertical separation is chosen by some upstream firms, while vertical integration is chosen by others in the equilibrium of a symmetric model. A vertically separating firm trades off fixed contracting costs against the strategic benefit of writing a...