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Production smoothing and the shape of the cost function
Galeotti, Marzio; Guiso, Luigi; Sack, Brian; … - 1997
We present estimates of inventory models based on firm level panel data and investigate whether over-simplified specification of the production technology may account for the frequent failure to find technological incentives to smooth production in the context of the standard linear-quadratic...
Persistent link: https://www.econbiz.de/10011608286
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The impact of financing constraints on markups: Theory and evidence from Italian firm level data
Bottasso, Anna; Galeotti, Marzio; Sembenelli, Alessandro - 1997
In this paper we look at both the theoretical and empirical behaviour of price-cost margins when capital market imperfections affect firms' markup policies. We present a model of a firm operating in an industry with differentiated products and facing imperfect markets for financing operations....
Persistent link: https://www.econbiz.de/10011608346
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Optimal Capacity Adjustment by a Multiplant Firm
Moretto, Michele - 1999
The paper studies the effect of scale economies on the optimal capacity adjustment of a mutiplant firm. It is shown that with increasing economies of scale plants are ranked in decreasing order, after which the optimal choice is to scrap the largest one. On the contrary, if there are decreasing...
Persistent link: https://www.econbiz.de/10011608492
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Marketing via friends: strategic diffusion of information in social networks with homophily
Chuhay, Roman - 2010
The paper studies the impact of homophily on the optimal strategies of a monopolist, whose marketing campaign of new product relies on a word of mouth communication. Homophily is a tendency of people to interact more with those who are similar to them. In the model there are two types of...
Persistent link: https://www.econbiz.de/10010272373
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Use of Long-term Auctions for Network Investment
McDaniel, Tanga; Neuhoff, Karsten - 2003
Short-term auctions for access to entry terminals of the British gas-network appear to successfully allocate scarce resources and capture scarcity rent. Now long-term auctions are being introduced to guide future capacity expansion decisions. In our model the fraction of rights issued in the...
Persistent link: https://www.econbiz.de/10011325061
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Investment Size and Firm's Value Under Profit Sharing Regulation
Moretto, Michele; Panteghini, Paolo M.; Scarpa, Carlo - 2003
's investment of endogenous size. Using a real option approach in continuous time, we show that profit sharing does not affect a … total investment. We also evaluate the reduction in the firm's value due to profit sharing, linking this reduction to the …
Persistent link: https://www.econbiz.de/10011325118
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Long-run Investment under Uncertain Demand
Di Corato, Luca; Moretto, Michele; Vergalli, Sergio - 2013
In the literature investigating the impact of uncertainty on short-run and long-run investment, most authors have used … general ones and has the advantage of providing closed form solutions for both short-run investment rule and long-run rate of …
Persistent link: https://www.econbiz.de/10010328689
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Entry on export markets and firm-level performance growth: intra-industrial convergence or divergence?
Mayneris, Florian - 2010
This paper investigates theoretically and empirically the endogenous investment decision of firms conditioning on … switchers), initial productivity and investment are strategic complements, inducing intra-industrial divergence. On the contrary …, when preferences are quadratic, initial productivity and investment are strategic substitutes: less productive firms invest …
Persistent link: https://www.econbiz.de/10010272453
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Investment in Tourism Market: A Dynamic Model of Differentiated Oligopoly
Cellini, Roberto; Candela, Guido - 2004
We present a theoretical model in tourism economics, assuming that the market for tourism is an oligopoly with differentiated products. Destinations (i.e., countries, regions, sites or even firms) can invest in order to improve their carrying capacity that can be interpreted as the stock of...
Persistent link: https://www.econbiz.de/10011324900
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Pollution Abatement Investment When Firms Lobby Against Environmental Regulation
Farzin, Y. Hossein; Zhao, Jinhua - 2003
In this paper, we study a firm's optimal lobby behavior and its effect on investment in pollution abatement capital. We … rates over an optimal time period. We show that lobby expenditure crowds out investment in abatement capital and that this …
Persistent link: https://www.econbiz.de/10011325109