Innovations in consumer products frequently rely on technological advances across multiple tiers in a supply chain. Considering the consumer market demand and downstream investment conditions as input, we model a game in a two-tier supply chain where downstream firms choose to adopt different...

This paper studies the macroeconomic implications of firm-branding activities. We show empirically that firms build market share by creating new brands, developing their existing brands, and buying established brands from other firms. Sales and prices of the underlying branded products tend to...

We study the introduction of new products in a vertically differentiated industry. Innovative firms have to engage into reducing time-to-market investments in order to shorten the time interval between innovation and sales. Still, these investments generate irreversible costs which have to be...

This study analyzes the optimal provision of goods in a market characterized by vertical product differentiation. We consider a duopoly model in which incumbents may introduce a new product with certain quality, and decide whether to keep or to withdraw the existing product from the market. We...

The Kyoto Protocol has introduced the so-called Clean Development Mechanism (CDM) under which industrialized countries are allowed to fulfill part of their obligations through the use of emission credits generated by emission reduction projects undertaken in developing countries. Developing...

We suggest a demand model for foreign languages and estimate demand functions for English, French, German and Spanish in 13 European countries. We show that three variables explain reasonably well the share of people who learn a foreign language: the larger the native population in the country,...

This paper analyzes the impact of R&D subsidies on incumbent firms to introduce new goods. We are especially interested in investigating various consequences of government subsidies for R&D, provided to firms that o.er products of di.erent qualities. This study examines the incentives of...

This study shows that preemptive investment in product proliferation is subject to a commitment problem that is not constrained to models of horizontal product di.erentiation, but applies to vertical product di.erentiation settings as well. We investigate the incentives of firms producing high-...

This study analyzes the optimal provision of goods in a market characterized by vertical product differentiation. We consider a duopoly model in which incumbents may introduce a new product with certain quality, and decide whether to keep or to withdraw the existing product from the market. We...

We compare the social welfare generated by a domestic government in the two types of policy setups: a "commitment" regime in which the government sets its policy instrument before the strategic choice is made by the domestic firm and a "non-commitment" regime where the policy variable is set...