This paper studies the consequences of physician authority on pharmaceutical prescribing. Physicians engage in a costly process of "matching" patients to the drug which most suits their particular conditions and characteristics.

This paper evaluates the sources of transitory market power in the market for personal computer (PCs) during the late 1980s. Our analysis is motivated by the coexistence of low barriers to entry into the PC industry and high rates of innovative investment by a small number of PC manufacturers.