In case of multiple creditors a coordination problem can arise when the borrowing firm runs into financial distress. Even if the project's value at maturity is enough to pay all creditors in full, some creditors may be tempted to foreclose on their loans. We develop a model of creditor...

This paper presents a dynamic random effects probit model for the realization of private firms' product and process innovations. We estimate the model with panel data collected by the Ifo Institute in Munich. The data covers the period between 1979 and 1986 and includes 301 firms of the West...

Based on an extended game-theoretic innovation-race model, we derive some Schumpeterian hypotheses of the impact of technological rivalry, market power, technological opportunities and demand expectations on the timing of product and process innovations. Using innovation data at the firm level...

The paper presents a dynamic general-equilibrium model of education, quality and variety innovation, and scale-invariant growth. We consider endogenous humancapital accumulation in an educational sector and quality and variety innovation in two separate R&D sectors. In the balanced growth...

We study oligopolistic competition in product markets where the firms' quantity decisions are delegated to managers. Some firms are commonly owned by shareholders such as index funds whereas the other firms are owned by independent shareholders. Under such an asymmetric ownership structure, the...

Price transparency in the sense of ‘more information for customers’ is known to increase efficiency. However, the introduction of price transparency platforms does not only providemore information for customers but also for rival firms—who may (mis)use the legal information channel to...