The paper shows that there is a close connection between (constant)consistent conjectures in a given game and evolutionary stabilityof conjectures. Evolutionarily stable conjectures are consistent andconsistent conjectures are the only interior candidates for evolutionarystability...

This paper examines the interactions between Foreign Direct Investment (FDI), inequality, and growth, both from a theoretical and an empirical point of view. We set up a growth model of a dual economy in which the traditional (agricultural) sector uses a diminishing returns technology, while FDI...

Immaterial information products (“content”) can be represented in digital form, which is anadvantage but also a source of problems. It is fundamentally impossible to prevent copyingof digital data, which is just a stream of bits – ones and zeros: Once you can read it, you cancopy it. With...

We present the asymptotic properties of double-stage quantile regressionestimators with random regressors, where the first stage is based on quantile regressionswith the same quantile as in the second stage, which ensures robustness of the estimationprocedure. We derive invariance properties...

This paper examines the validity of alternative assumptions aboutpublic enterprise strategies in the presence of both domestic and internationalcompetition. It extends the quantity-setting game to apreplay stage and endogenizes the firms’ order of moves to show thati) Cournot competition is...

The Hodrick-Prescott …lter is often applied to economic series as part of thestudy of business cycles. Its properties have most frequently been exploredthrough the development of essentially asymptotic results which are practicallyrelevant only some distance from series endpoints. Our concern...

In this paper we consider the situation where the deterministiccomponents of the processes generating individual series are linear trendsand the individual series are independent I(0) or I(1) processes. We showthat when those time series are used in ordinary least squares regression,the...

This paper compares Bertrand and Cournot equilibria in a horizontallydifferentiated duopoly market with non-tournament R&D competition. We consider thatsuccess in R&D is uncertain. We show that whether firms invest more under Cournotcompetition or Bertrand competition is ambiguous and depends on...

This paper shows that the possibility of licensing can significantly alter theeffects of entry on social welfare. We find that while licensing with output royaltyalways raises welfare due to entry, licensing with up-front fixed-fee reduces thepossibility of lower welfare compared to a situation...

We exploit the aggregative structure of the public good modelto provide a simple analysis of the voluntary contribution game. Incontrast to the best response function approach, ours avoids the pro-liferation of dimensions as the number of players is increased, andcan readily analyse games...