Compared with the social optimum, a monopolist usually sells too little. This result seemingly includes the case of a lab that licences its patented cost innovation: <link>Katz and Shapiro (1986)</link> find `conditions under which &lsqb;the lab&rsqb; will issue fewer than the socially optimal number of licences.'...

Consider a new export market in which firms can invest in quality but may fail to achieve quality. Quality of the export good, then, varies across firms, having endogenous (whether to invest) and exogenous (determined by nature) aspects. Previous works suggest that the market outcome and...

Traditional modelling of mergers has the merged firms (insiders) cooperate and maximize joint profits. This approach has several unappealing results in quantity-setting games, for example, mergers typically are not profitable for insiders, but are profitable for non-merging firms (outsiders). We...