We explore the hold-up problem when trading parties can make specific investments simultaneously or sequentially. As previously emphasized in the literature, sequencing of investments can allow some projects to proceed that would not be feasible with a simultaneous regime. This is not always the...

A supergame between public and private firms in an oligopolist industry is studied in this paper. We discover that there is a repeated-game equilibrium where the public firm produces less than its one-shot Nash equilibrium quantity, nevertheless the total supply and hence the social welfare are...

The distributional implications of different forms of financing for investment in human capital are investigated. An overlapping generations model which incorporates human capital is employed.

In a parimutuel betting system, a successful player's return depends on the number of players who choose the same action. This paper examines a general solution for two-action sequential parimutuel games, and shows how the (unique) equilibrium of such games leads to a simple pattern of...

It is now widely believed that Foreign Direct Investment (FDI) affects positively the productivity of individual enterprises in the host economy and this is a main argument in favour of FDI. Although China is the largest recipient of FDI after the USA, there has been little empirical research as...

We explore hold-up when trading parties can make specific investments simultaneously or sequentially. With simultaneous investment both investors are held-up. With sequential investment contracting becomes possible after the project has commenced, so the second investor avoids being held-up. If...

By simulating a model of the optimal level of saving in a small open economy, this paper calculates the levels of optimal national saving, investment and the current account balance for five Asian countries, Hong Kong, Japan, Singapore, Malaysia and Philippines, for the period from 1997 to 2050....

This is a preliminary version of a chapter of a prospective book which springs from concerted effort among several researchers in the field of industrial economics. This chapter is devoted to recent development in research on strategic investment. We start with a brief overview on the past...