Showing 1 - 10 of 25
This paper analyzes the impact of simultaneous increases in piracy (piracy effect) and network externalities (network effect) on R&D investment. A single firm's R&D investment increases (or decreases) if the network effect (or piracy effect) is dominant. With R&D competition, if the firms...
Persistent link: https://www.econbiz.de/10011048826
This paper considers the process optimal strategies for an enhanced index tracking problem. The investment goals are set to achieve a higher return than the benchmark by setting the portfolio's risk profile identical to the primary index risk factors. Return differences between the index and the...
Persistent link: https://www.econbiz.de/10010781995
A two-equation integrated model is developed to capture bank profit and risk-avoidance decisions. Output is limited to customer loans. The profit function is based on output and selected inputs. Risk-avoidance (using the capitalization ratio) depends on micro and micro∗macro interactive...
Persistent link: https://www.econbiz.de/10011048764
In this paper we generalize the median regression method to be applicable to system of regression equations, in particular SURE models. Giving the existence of proper system wise medians of the residuals from different equations, we apply the weighted median regression with the weights obtained...
Persistent link: https://www.econbiz.de/10010573371
The aim of this paper is to put forward a beta convergence model using spatial interaction to evaluate the dynamics of financial ratios. We overcome some of the limitations that come from the traditional partial adjustment model by relating both models. We show that the parameters of the two...
Persistent link: https://www.econbiz.de/10011048947
This paper formulates a duopoly model of firms concerned with relative profits as well as their own profits and investigates the relationship between the degree of competitiveness in a market and R&D expenditure. We find a non-monotone relationship between the two variables. When the duopoly...
Persistent link: https://www.econbiz.de/10010636322
In a recent work, Dragone et al. (2010) modeled an optimal control model of pollution abatement, and investigated the … the work of Dragone et al. (2010) by providing a dynamic optimal control model of pollution abatement with emissions … emissions permits bought or sold in continuous time through the use of optimal control theory. We illustrate the results with a …
Persistent link: https://www.econbiz.de/10010729823
This paper examines the production decision of the competitive firm under uncertainty when the firm is not only risk averse but also regret averse. Regret-averse preferences are characterized by a modified utility function that includes disutility from having chosen ex-post suboptimal...
Persistent link: https://www.econbiz.de/10010729854
In actual economies, players sometimes would offer an upper limiter to their output due to capacity constraints, financial constraints and cautious response to uncertainty in the world, or offer a lower limiter to their output due to economies of scale or break-even consideration. In this paper,...
Persistent link: https://www.econbiz.de/10010738006
In this paper we are analyzing a mixed quantity-setting duopoly consisting of a socially concerned firm and a profit-maximizing firm. The socially concerned firm considers one group of stakeholders in its objective function and maximizes its profit plus a share of consumer surplus. Both firms...
Persistent link: https://www.econbiz.de/10011048784