Showing 1 - 10 of 81
We study the development of a duopoly industry -evolution of firm capacities and competitive behavior- in a continuous-time real-options model of capacity investment. Our methodology allows the evaluation of investment options and exercise rules in a strategic setup. In the initial industry...
Persistent link: https://www.econbiz.de/10005100881
We study a simple duopoly model of preemption with multiple investments and instantaneous Bertrand competition in a stochastically growing market. Different patterns of equilibria may arise, depending on the importance of the real option effect. If the average growth rate of the market is close...
Persistent link: https://www.econbiz.de/10005100883
This paper is concerned with the incentive properties of the Matthew Effect by which since Merton [1968] one is usually describing the various cumulative advantages that obviously affect academic competition. We introduce a model of sequential contests in which the agents that have initially...
Persistent link: https://www.econbiz.de/10005570182
In the 1970s, Thomas C. Schelling proposed a model which claimed to show that a high degree of spatial segregation can result from individual preferences which do not in themselves aim to achieve such a degree of collective segregation. A perverse effect seems therefore to occur. However, the...
Persistent link: https://www.econbiz.de/10005792587
One of the key assumptions of neoclassical economics is the existence of the rational individual, who always tries to maximize his or her utility. The paper shows possibilities of experimental evaluation of this hypothesis with respect to the various groups of people who undertake the...
Persistent link: https://www.econbiz.de/10008754965
infer causation from education to smoking and find strong evidence that education, whether it be measured in years of …, more particularly the probability of smoking regularly. Interestingly, however, while we find that more education … substantially increases the probability of never smoking, our other main finding is suggestive that increased education has a …
Persistent link: https://www.econbiz.de/10005100687
individuals with low levels of education, and to situate it in the context of the evolution in the value of a high school diploma … over the 1981-1996 period, conditional on not pursuing post-secondary education. To do so I make use of Statistics Canada … whether the value of holding a high school diploma (excluding the option value of pursuing post-secondary education) has …
Persistent link: https://www.econbiz.de/10005100776
Les nouvelles théories de la croissance, dites " théories de la croissance endogène ", se proposent de mettre en exergue différents modèles dans lesquels la croissance est assurée par l'accumulation d'un facteur particulier (capital humain, technologie, infrastructures publiques, etc.)....
Persistent link: https://www.econbiz.de/10005458749
Kooperativní chování je nezbytnou podmínkou pro existenci moderních komplexních společenství a ekonomik, jak je známe dnes. Z pohledu společenských věd je proto zajímavé porozumnět, jak takové chování může převažovat i v situacích, kdy jednoduchá úvaha vede k opačnému...
Persistent link: https://www.econbiz.de/10005808659
We study horizontal partial acquisitions in an oligopolistic industry in the absence of synergies. Contrary to existing results, we find that a dominant shareholder may choose to acquire shares in a competitor although the aggregate profit of the group of firms under his control, and even the...
Persistent link: https://www.econbiz.de/10005021655