A two-country differentiated duopoly model is set out in which economic integration increases firms' incentives to invest in R&D, purely through the effect of increased intensity of competition between firms. The model is extended to incorporate knowledge spillovers, which, if related to the...

Erev and Roth (1998) among others provide a comprehensive analysis of experimental evidence on learning in games, based on a stochastic model of learning that accounts for two main elements: the Law of Effect (positive reinforcement of actions that perform well) and the Power Law of Practice...

In Ulph (2002) I analysed how the possibility of future resolution of uncertainty about damage costs affected the incentives and timing for countries to join a self-enforcing international environmental agreement (IEA). I analysed two membership rules – fixed (countries commit whether to...

We identify the inefficiencies that arise when negotiation between two parties takes place in the presence of transaction costs. First, for some values of these costs it is efficient to reach an agreement but the unique equilibrium outcome is one in which agreement is never reached. Secondly,...