In a general setting with uncertainty and spillovers in R&D activity, we consider the incentive to cooperate among firms at any or all of the following three stages. Firms can jointly agree on the level of R&D expenditures, they can set up joint research facilities, and/or they can engage in an...

We compare predictions from a theoretical model based on the structure of the main outdoor retail market in Jerusalem with the results of an empirical analysis of price response to changes in cost. We find that firms without adjacent competition exhibit both upward and downward price rigidity,...

This paper examines the attitude of Jewish law to competition in light of the economist's understanding of the benefits of competition and of the beneficiaries from intervention in the competitive process. The punchline of this paper is simple. Although Judaism has used a whole host of...

In this paper we considered a new solution to the credibility problem present in network industries. This problem arises because the value of a network good to its owner depends positively on the number of consumers who buy the good. Because of this property, it is in the interest of the...