This paper analyzes a dynamic relational contract for employees with reciprocal preferences. I develop a tractable model to investigate how "direct" performance-pay (promising a bonus in exchange for effort) and generous upfront wages (which activate the norm of reciprocity) interact over the...

We analyze a symmetric n-firm Cournot oligopoly with a heterogeneous population of optimizers and imitators. Imitators mimic the output decision of the most successful firms of the previous round a la Vega-Redondo (1997). Optimizers play a myopic best response to the opponents' previous output....

In the economic literature on market competition, firms are often modelled as individual decision makers and the internal organization of the firm is neglected (unitary player assumption). However, as the literature on strategic delegation suggests, one can not generally expect that the behavior...

We study the anticompetitive effects of predatory pricing and the efficacy of three policy responses. In a series of experiments where an incumbent and a potential entrant interact, we compare prices, market structures and welfare. Under a laissez-faire regime, the threat of post-entry price...

Despite the empirical relevance of advertising strategies in concentrated markets, the economics literature is largely silent on the effect of persuasive advertising strategies on pricing and market structure and increasing (or decreasing) dominance. We propose a simple model of persuasive...

Committee decision making is examined in this study focusing on the role assigned to the committee members. In particular, we are concerned about the comparison between committee performance under specialization and non-specialization of the decision makers.

In this paper, we report the complete and unabridged results of an exploratory study of typical front-end activities in 28 innovation projects in German and Japanese companies. We further reveal differences in the practice of innovation management in both countries. Based on these, we develop...

The aim of this paper is to describe front-end activities in practice and get first hints for effects of the front end on project outcome and the meaning of contextual factors. The results of an exploratory study of fourteen product development projects are contrary to the wide-spread opinion...