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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
We apply the random fields framework proposed by Durlauf (1997) and Brock and Durlauf (2001) to a non-cooperative game of binary choices. We extend their model to allow for a more general distribution of the economic agents heterogeneity, in accordance with Glaeser and Scheinckman (2001). We...
Persistent link: https://www.econbiz.de/10004968581
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
We study experimentally a standard four-player Hotelling game, with a uniform density of consumers and inelastic demand. The pure strategy Nash equilibrium configuration consists of two firms located at one quarter of the ``linear city'', and the other two at three quarters. We do not observe...
Persistent link: https://www.econbiz.de/10005106350
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
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