Laitinen (1980) derives an input allocation model for a multiproduct firm that first maximizes revenue and second maximizes profit. While theoretically elegant, the model has never been formulated empirically because of the complexity of the model’s price-deflated terms. This paper derives the...

Random choices of prices and product characteristics can be used by a contestable monopolist to deter entry and fully extract the monopoly rent. We develop this idea in a model of Bertrand price competition. In equilibrium, one firm enters the market and makes choices that are unpredictable to...

Existing hedonic methods cannot be easily adapted to estimate willingness to pay for product characteristics when willingness to pay depends on a very large basket of goods. We show how to marry these methods with revealed preference arguments to estimate bounds on willingness to pay using data...

This paper quantifies the effects of drug monopolies and low per-capita income on pharmaceutical prices in developing economies using the example of the antiretroviral drugs (ARVs) used to treat HIV.

We consider a duopolistic Bertrand competition setting in which competing firms can turn into intermediaries. The intermediation option allows firms to take advantage of the rival firm’s low price. We then give conditions for the existence of equilibrium.

This paper studies the discriminatory pricing of an intermediate good and compares two models with a different timing of investments undertaken by the downstream firms, before or after the upstream monopolist sets the input prices. When the more efficient downstream firm is charged a higher...

The supposed creativity of left-handed and dyslexic individuals may fit well with an entrepreneurial occupation. Empirical evidence from two representative Dutch samples, however, shows that left-handed and dyslexic individuals are not more likely to be(come) entrepreneurs than right-handed and...

Cressy (2000) argues that the positive correlation between assets and the rate of business startups is due to DARA preferences. We show however that the required property is prudence, and prudence is consistent with DARA, IARA or CARA.

Three components govern the impact of intangible management on the growth of SMEs: human, structural and relational capitals. The relationship with the institutional system of innovation (ISI) is novel. The results highlight that the ISI does not satisfy the needs of SMEs fully.

Using grocery store data we study the relationship between dispersion and the business cycle. Our findings reveal that overall there is no robust and significant relationship; however, these mask important heterogeneity in the cyclicality of dispersion at the category level.