I consider a situation wherein a research lab has developed a process innovation and wants to sell licenses to members of an industry. The literature has mostly considered the sale of exclusive licenses. I demonstrate, using both theoretical and experimental methods, that when firms sell...

This dissertation contains three essays. In the first essay, we consider nontraded goods as an important impact on bilateral trade flows. A testable gravity equation is derived and a simple example is demonstrated. A sample of 1995 including 118 countries is examined. The results show that...