How does demand uncertainty affect entry into skill-based competition? I investigate this question in a market entry experiment with skill-based payoffs by systematically varying two key elements of the market environment: demand risk and expected market size. Results show that people's...

We survey the literature on the effects of public sector outsourcing. Guided by theory, we systematically arrange services according to the type and magnitude of their contractibility problems. Taken as a whole, the empirical literature indicates that public sector outsourcing generally reduces...

We analyze a two-stage game between two heterogeneous players. At stage one, common risk is chosen by one of the players. At stage two, both players observe the given level of risk and simultaneously invest in a winner-take-all competition. The game is solved theoretically and then tested by...

Recent years have witnessed an enormous amount of reorganization of the corporate sector in the US and in Europe. This paper examines the role of market competition for this trend in corporate reorganization. We find that at intermediate levels of competition the CEO of the corporation decides...

From an employer's perspective a tournament should induce agents to exert productive activities but refrain from destructive ones. We experimentally test the predictive power of a tournament model which suggests that within a reasonable framework productive and destructive activities are not...

We analyze a two-stage game between two heterogeneous players. At stage one, risk is chosen by one of the players. At stage two, both players observe the given level of risk and simultaneously invest in a winner-take-all competition. The game is solved theoretically and then tested by using...

We extend theory on private-collective innovation by studying the role of exclusion rights for technology in the competition between private-collective and other innovators. We argue that private-collective innovators both pledge their own and invest in orphan exclusion rights for technology as...

The issues related to proper assessments of the competitiveness of farming enterprises in general and of different type and locations has been among the most topical for academicians, agro-business managers, interest groups, administrators, politicians, international organizations, and the...

Competition and a competitive environment serve as a crucial foundation for the effective use of resources and the growth of economy, pushing enterprises to be more efficient, limit costs, and spend more in inventing and developing new goods. Customers may obtain more advantages at a lesser cost...

The 'ratchet effect' refers to a situation where a principal uses private information that is revealed by an agent's early actions to the agent's later disadvantage, in a context where binding multi-period contracts are not enforceable. In a simple, context-rich environment, we experimentally...