The real options investment theory shows that greater uncertainty about market revenues reduces current R&D investment by increasing the value of waiting. This paper presents empirical evidence that patent protection mitigates the effect market uncertainty on R&D investment.

Real options investment theory predicts current investment falls as uncertainty about market returns increases. In the case of R&D investment, which is usually considered an irreversible form of investment, this effect should be quite pronounced. This paper tests the real options prediction...

Institutional early childhood education and care can be funded and delivered in various ways relying on both the public and the private sector. The provision of childcare ranges from public operation to mixed markets with public and private providers to considerably marketised systems with...

We present and estimate a model of competition in a two-sided market: the market for magazine readership and advertising. Using data on magazines in Germany, we find evidence that magazines have properties of two-sided markets. The results are consistent with the perception that prices for...

In this paper we analyze the impact of service station availability on the demand for alternative-fuel vehicles and the consumers' willingness to pay for an enlarged fueling infrastructure. We examine a stated preferences choice experiment conducted as a CAPI survey with about 600 interviews of...

Globalization has provided many companies with new opportunities for growth and efficiency. This requires them to operate successfully across cultural and social borders. These can be stumbling blocks to internationalization and have been found to cause frequent errors and delays for...

In this paper we use Bayes estimates of a multinomial probit model with fully flexible substitution patterns to forecast consumer response to ultra-low-emission vehicles. In this empirical application of the probit Gibbs sampler, we use stated-preference data on vehicle choice from a...

In this paper, we study the impact of fuel availability on demand for alternative-fuel vehicles, using data from a survey of some 600 potential car buyers in Germany. The survey was conducted as a computer-assisted personal interview and included a choice experiment involving cars with various...

Opponents of the voluntary labeling scheme for genetically modified (GM) food products often argue that consumers have the right to knowʺ and therefore advocate mandatory labeling. In this paper we argue against this line of reasoning. Using experimental auctions conducted with a sample of the...

Globalization has led to exciting new business opportunities around the globe. Still, national and cultural boundaries have not evaporated into a borderless world.ʺ Several studies have identified so-called liabilities of foreignness that arise from a lack of embeddedness and roots in the host...