Through a learning-by-doing process, a firm's efficiency depends positively on the extent of its previous business activity. From a dynamic incentives perspective, therefore, efficiency is endogenous. In addition, the efficiency of the firm is likely to be subject to private information. The...

Two jurisdictions compete to attract shares of the R&D investment budget of a large multinational enterprise, whose investments potentially confer positive spillovers on national firms. The firm has private information both about its efficiency and about spillovers. It is shown that strategic...

With internationally mobile labour and the abolition of national border controls, the individual may not only have private information about his skill level (adverse selection), but also about the length of time he resides and works in the home country (moral hazard) and about his foreign...