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...

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...

We consider a dynamic version of sender-receiver games, where the sequence of states follows an irreducible Markov chain observed by the sender. Under mild assumptions, we provide a simple characterization of the limit set of equilibrium payoffs, as players become very patient. Under these...

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...

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...

French Abstract: Cette étude analyse la production du secteur informel non-agricole camerounais et détermine dans quelle mesure son efficience peut contribuer à améliorer les niveaux de vie au Cameroun. A cet effet, les techniques d'enveloppement des données (Data Envelopment Analysis, DEA)...

French Abstract: Cet article s'intéresse à l'effet du travail hors ferme sur l'efficacité technique d'un échantillon de fermes laitières québécoises. Les analyses sont basées sur l'estimation d'un modèle stochastique de fonction de coûts. Nous formulons l'hypothèse selon laquelle les...

Trend productivity growth is a crucial determinant of future living standards as well as fiscal balances. In this article, Benoit Robidoux and Bing-Sun Wong from Finance Canada examine the issue of whether trend productivity growth has increased in Canada and conclude that in fact it has. If...

Dirk Pilat and Paul Schreyer of the OECD discuss the new OECD Productivity Database. The database covers 26 OECD countries for labour productivity estimates, as well as 14 countries for multifactor productivity estimates. While the database represents the most comparable productivity estimates...

The persistence of high rates of unemployment calls for a discussion of the tax treatment of production factors. In France as in many other countries, material productive resources are subject to a legally recoverable tax, VAT, whereas unrecoverable obligatory social levies strike human...