This paper develops a theory of strategic vertical DFI (direct foreign investment) to suggest an explanation for the empirical puzzle of the missing "pollution-haven" effect. It focuses on a firm's strategic incentive to create multi-market interdependence (in addition to other conventional...

In spite of Microsoft´s quasi monopoly position in the market for operating systems Linux has succeeded to become a serious competitor of Microsoft Windows. From an economic standpoint this fact raises some puzzles.(...)