We show that the presumed incompatibility of R&D and competition in Spence (1984) is not fundamental, but hinges on a critical modeling choice. Specifically, we show that for a widely used class of R&D technology, that is, the functional form mapping R&D effort into cost reduction, the...

We explore firm-level markup and profit rates during the COVID-19 pandemic for a panel of 3,548 publicly-traded firms in Compustat and find increases for the average firm. Those increases can be captured by previous trends in market power and profitability. Furthermore, focusing on the average...

In 2010, the Federal Communications Commission recognized a separate class of Internet-related services known as managed services or specialized services, but never defined what these services are. Poorly written rules for managed or specialized services could create a loophole large enough to...

We consider licensing with a patent competition for a non-drastic process innovation among firms competing in a Cournot market. We study whether licensing improves social welfare, after taking rent dissipation into account. For licensing auction, welfare worsens for minor innovations and...

Trading volumes in credit default swaps (CDS) have fallen by more than 75% since the 2008 financial crisis to less than $9 trillion notional amount outstanding as of June 2015. This dramatic decline in volumes comes, in part, because of new laws and regulations focused on reducing the risk of...

This paper studies when a two-sided market features win-win (market sharing), winner-take-most (market dominance) or winner-take-all (monopoly). While symmetric market structure is a natural result of competition among symmetric platforms, asymmetry also arises when network effects are strong....

This paper introduces a number of game-theoretic tools to model collusive agreements among firms in vertically differentiated markets. I firstly review some classical literature on collusion between two firms producing goods of exogenous different qualities. I then extend the analysis to a...

Algorithms are the fundamental ingredient of online businesses such as search engines, marketplaces, peer-to peer platforms and social networks. They have already deeply affected the way individuals shop, communicate, and interact with one another. In pursuit of automation-driven efficiencies...

Around the start of this new millennium, scholars in the operations management/operations research field started to make important contributions to the study of price competition models. In this tutorial, we review these contributions, and partition them into five broad areas. Most of the...

Rules designed to regulate capital markets and protect investors often have spillover effects, either negative or positive, on stakeholders other than investors. These stakeholders can include managers, employees, consumers, taxpayers, gatekeepers, vendors, and others. This raises a question as...