We consider an economy where firms operate in an imperfectly competitive industry and mutually affect each others' investment opportunities. Each firm is assumed to face a mutually exclusive choice of investing in either a short- or a long-term project. For example, firm i's commitment to a...

Conventional duopoly models typically assume agents possess specific conjectures concerning other agents' behavior. In this paper equilibrium conjectures are endogenous and are a result of a joint factor market and product market equilibrium. Factor markets affect product markets since potential...

A simple two-period linear demand durable-goods monopoly model is analyzed where the firm faces an ad-valorem tax. Unlike previous models, the impact of an expected future tax is not analyzed; rather it is assumed the tax only is levied in the first (current) period. The model shows that such a...

The authors consider optimal taxation in a two-period model of a durable goods monopolist where pollution is a byproduct of production. In the case where the firm rents its output, the optimal tax is lower than the tax placed on a competitive industry, all else held constant. When the monopolist...

A two-period durable-goods monopoly model is analyzed where the durable good is provided by a state owned enterprise (SOE). First, we suppose that the SOE is under pressure to provide employment, and therefore has an employment goal, as well as the traditional profit and consumer surplus...

We analyze a simple linear demand bilateral monopoly situation where one of the firms, either the up-stream manufacturer or the down-stream retailer, is socially concerned in terms of its desire to enhance its end-customers’ welfare in addition to the traditional profit motive. Two cases are...

Utilizing a two-period durable-goods framework, we show that in uncommitted sales markets a firm may earn higher profits as it increases its level of corporate social responsibility (CSR). We find that this occurs even though CSR has no direct impact other than increasing the durable-goods...

We analyze a stylized distribution channel (bilateral monopoly) model where an upstream manufacturer sells output to a downstream retailer. In a two‐stage linear demand game setting, we show that a two‐part contract, consisting of a wholesale price and corporate social responsibility (CSR)...