This article models the intertemporal behaviour of a firm that sets product prices and simultaneously invests in R&D. The model shows that the dynamic pricing rule follows the evolution of the production cost and is independent of the evolution of the product quality. Thus, process innovation,...

The conjecture of a price-induced technical progress was formulated by Hicks in 1932. It acquired prominence during the seventies with the work of Hayami and Ruttan who dealt with the agricultural sectors in the United States and Japan. A novel specification of this hypothesis is that output and...

In this paper I consider the 1991 Grossman-Helpman model which analyses the role of innovation on growth. The model assumes constant returns to scale. I intend to show what happen in this model if I assume strong increasing returns. In particular, under the assumption of increasing returns of...

The paper aims at testing for the presence of long memory in domestic and cross border mergers and acquisitions in Brazil along the 2002-1/2011-4 period. The evidence from the estimation of fractional ARIMA models at the sectoral level provided scant evidence of the presence of persistent long...

This paper analyzes the value of menus of contracts in a context of delegated expertise with nondelegated decision making. Firms delegate to managers the task of obtaining information about strategic decisions, and they choose whether or not to delegate the actual decision-making process to...

Overconfidence can lead to excessive business entry. Here we replicate the pioneer experiment finding this nexus (Camerer and Lovallo 1999) and extend it in two major directions: (1) to consider managers as well as student subjects and (2) to explicitly take into account selected characteristics...

Pricing strategies may include the advertising of meeting-the-competition clauses (MCCs). We show in a specific spatial model scenario with differently informed consumers that MCCs primarily serve as a device to facilitate collusion instead of allowing for price discrimination between these...

We revisit the issue of comovements of emerging and developed stockmarkets, and provide a simultaneous treatment of data for the eighties and nineties. We show that while emerging markets experience greater instability in the long term than their developed counterparts, there is room for...

The main aim of economy is achieving more benefit in a transaction and the best way is to get a method to foresee the future prices. In old commercial methods the experience and guestimation was the fundamental tools for predicting the price in coming days. Many different theories and methods...

Data from 94 Alabama hospitals are examined to determine the relative profitability of sixteen outpatient Diagnosis Related Groups. Analysis of variance and Bonferroni multiple comparisons are made. Supplemental outpatient services are shown to be the most profitable outpatient service studied.