This paper offers a new approach to the definition of manufacturing activities, placing them in a broader framework to capture the dynamics of manufacturing in the economy. After discussing why in many cases it may bc appropriate to consider producer services and tnanttfacturing industries...

In this paper, we discuss a scenario in capital structure where two divisional managers compete for capital from a firm for their projects in a perfect information setting. We consider verifiable profits and study take-it-or-leave-it contracts where the managers ask for capital from the firm...

This paper analyzes mergers incentives in an asymmetric mixed oligopoly consisting of two identical private firms and one public firm. It is shown that when there is a technological gap between the public and private firms, both of them will want to merge when the public firm is inefficient and...

This paper explores the asymmetric adjustment speed of gasoline price in twelve European Union (EU) countries transmitted directly in a single stage formulation. The empirical results shed new light on the taxation effect and its role to the price asymmetry nexus, pointing that in many EU...

At first glance, game theory could support with rational, ideologically neutral arguments the logic necessity of acting ethically in business. Apparently, this is what we learn from the Prisoner’s dilemma, the Peasant’s dilemma or Tit for Tat. All these strategic games suggest that the...

Research papers on innovation activity share the view that whenever an invention is made available by a startup innovator, getting its ownership by acquisition is beneficial for incumbent firms. In this note, I show by means of an example that there are some circumstances in which accomodating...

This paper studies how the strategic interaction between a specialized communication platform and two firms, competing in prices and advertising efforts, determines the equilibrium advertising fee and the pattern of competition between sellers. We show that the link between information and price...

We must admit, whether we agree or not that the SMEs in Kosovo as well as in the majority of the world's economy are a driving force for an economic growth, as well as an important part of the national industry. The various flows of economic cycles in transition identify SMEs to be the promoters...

This note analyzes the impact of habit formation in media markets on the behavior of a two-sided newspaper platform. Using a simple dynamic approach we find that habit formation (as well as indirect network effects) lead to higher quantities and profits. Price setting, however, strongly depends...

By adjusting the strength of IPRs protection, the government can change the extent of knowledge spillovers in R&D. A large spillover rate helps to improve the productivity of the less efficient firms and save on the overall production costs. But, at the same time, it reduces the innovator's...