We study how firms decide whether to continue an existing relationship or switch the vendor of outsourced services. Because of incomplete contracts and relationship-specific investments, client organizations may face switching costs, which in some cases may be large enough to render vendor...

The paper explains why some firms transfer their technology to competitors without direct compensation. We consider a Hotelling market where duopolists sell products with different qualities. This market consists of heterogeneous consumers, comprising two groups in terms of their valuations of...

When customers face financing frictions, they can retain suppliers through nonmonetary incentives, such as sharing their technology, thereby fostering supplier innovation. Using customer-supplier pairs in the U.S., we find that suppliers of customers who violate covenants become more innovative,...

Extending a brand beyond its original product category is a major strategy for long-term profitability. A brand owner can internalize the development of the extension product, or license the brand to an external partner in order to exploit the licensee's better capabilities and higher efficiency...

Extending a brand beyond its original product category is a major strategy for long-term profitability. A brand owner can internalize the development of the extension product, or license the brand to an external partner in order to exploit the licensee’s better capabilities and higher...

In the last few decades, a valuation of intangible assets is an activity of particular importance, not only because of growing number of transactions with intangibles but for accurate financial reporting as well. In this discipline, a special area is dedicated to the research of different...

Given potential abuse, conflicts of interest, and other issues, why do companies routinely pay for their managers to entertain the managers of other firms and allow their own managers to be so entertained? An answer that such practices facilitate inter-firm cooperation is incomplete because it...

In many markets, homogenous goods and services are sold both by large global frms and small local frms. Surprisingly, the large frms charge, often substantially, higher prices. Examples include hotels, airlines, and coffee shops. This paper provides a parsimonious model that can account for...

Traditional models of consumer choice assume consumers are aware of all products for sale. This assumption is questionable, especially when applied to markets characterized by a high degree of change, such as the personal computer (PC) industry. I present an empirical discrete-choice model of...