I investigate the issue of endogenous spillover of R&D information across firms through information exchange between their employees. Although the firms typically cannot observe and restrict communication between their employees in a direct way, they can regulate information flows through the...

This paper focuses on implementation issues in environments where it may be costly for the players to send certain messages. We develop an approach allowing to characterize the set of implementable outcomes in such environments, and then apply it to derive optimal mechanisms. The key elements of...