We study firms' incentives to create switching costs using a four-period model consisting of two consecutive price-competing stages intervened by options to create switching costs early (before price competition) and late (during price competition). Acknowledging that many real/social switching...

This paper estimates a dynamic oligopoly model of product innovation and proposes an approach to evaluate an equilibrium effect of public policy on firm's innovation activities. The model considers a multi-agent Markov-Perfect Nash Equilibrium, allowing for firm's dynamic decision making on...

We study Markov perfect equilibria (MPE) of two-player multi-mode differential games with controlled state dynamics, where one player controls the transition between modes. Different types of MPE are characterized distinguishing between delay equilibria, inducing for some initial conditions mode...

Se estudia la evolución de la competencia en el mercado español de electricidad, proponiendo un análisis mediante teoría de juegos. Se elabora un modelo basado en juegos dinámicos siguiendo el concepto de Equilibrio Perfecto de Markov, tomando como bloque elemental una descripción de la...

Discrete-time stochastic games with a finite number of states have been widely applied to study the strategic interactions among forward-looking players in dynamic environments. These games suffer from a “curse of dimensionality” when the cost of computing players’ expectations over all...

This paper reviews a framework for numerically analyzing dynamic interactions in imperfectly competitive industries. The framework dates back to Ericson and Pakes [1995. Review of Economic Studies 62, 53–82], but it is based on equilibrium notions that had been available for some time before,...

The paper is concerned with the economic theory of George Stigler. First part outlines the life of George Stigler. Second part examines his dissertation "Production and Distribution Theories" (1941). Third part discusses his textbook "The Theory of Price" (1946). Forth part is devoted to his...

Carrying out successful succession in family businesses is an issue of vital significance for businesses themselves, and a great challenge for the pragmatics of family business management. It is also an issue important for the dynamics of Poland's economic development since it regards a wide...

This paper presents new evidence on the relationship between competition and innovation by extending previous literature from manufacturing to financial services. We introduce a new measure of overall innovation by estimating and enveloping annual minimum cost frontiers to create a global...