In this paper I construct a new discrete choice model of differentiated product demand that combines the pure characteristics demand model and the random coefficient logit demand model. In this hybrid model consumers are exposed to an idiosyncratic taste shock when they make a brand choice but...

We empirically analyze the welfare effects of cross-firm bundling in the pharmaceutical industry. Physicians often treat patients with "cocktail" regimens that combine two or more drugs. Firms cannot price discriminate because each drug is produced by a different firm and a physician creates the...

The paper has two objectives. The first is to construct a dynamic model of research joint ventures (RJVs) in which firms competing in the product market cooperate in investing to improve generic manufacturing technology. The second objective is to analyze cooperative research led by SEMATECH in...