We examine the situation in which firms attempt to fully appropriate returns to their own R&D investment through the intellectual property protection mechanism. To do this, we set up three different games: asymmetric IPP, symmetric IPP, and non-IPP regimes. Each game consists of two stages: each...

We examine the effect of international production relocation on wage bargaining in the home country. We consider the two-stage game. In the first stage, at a domestic plant, a firm and a labor union negotiate over a wage. In the second stage, after observing the negotiated wage, the firm decides...