Multi-period multi-product regulatory schemes for electricity distributors are presented, based on cost information from a productivity analysis model and an agency theoretical decision model. The proposed schemes are operational and demonstrate considerable advantages compared to the popular...

We consider a two-period duopoly characterized by a one-way spillover structure in process R&D and a very broad specification of product market competition. We show that a priori identical firms always engage in different levels of R&D, at equilibrium, thus giving rise to an innovator/imitator...

We briefly review the rationale behind technological alliances and provide a snapshot of their role in global competition, especially insofar as it is based around intellectual capital. They nicely illustrate the increased importance of horizontal agreements and thus establish the relevance of...

We define an evolutionary process of “economic Darwinism” for playing-the-field, symmetric games. The process captures two forces. One is “economic selection”: if current behavior leads to payoff differences, behavior yielding lowest payoff has strictly positive probability of being...

This paper explores an algorithm which serves as a market auctioneer under the following constraints: [i] traders arrive randomly and each sales/purchase order should be executed at the currently posted price (sequential service), [ii] the auctioneer need not know the exact fundamental value of...

Different market settings are considered in a free trade environment, where firms can choose technology, quality, and price or quantity. The shape of competition in prices requires the intervention of governments, via a common antidumping policy to make firms converge on the simultaneous...

We relate the sources of innovation market failure to the dominant mode of sectoral innovation and outline mechanisms for public support of innovation that target specific sources of innovation market failure.

We study the long run e¤ects of transparency in a circular town model of a differentiated market. The market is not fully transparent on the consumer side: A fraction of consumers are uninformed about prices. Increasing transparency reduces the equilibrium price, profit and entry of firms. This...

This paper deals with a general version of a two-stage model of R&D and product market competition. We provide a thorough generalization of previous results on the comparative performance of noncooperative and cooperative R&D, dispensing in particular with ex-post symmetry and linear demand...

We integrate strategic-trade and political-economy considerations in a unified framework to analyse unilateral trade policy. Foreign firms compete on Home's market through export or foreign direct investment (FDI). They also lobby Home's government which sets trade (tariff) and industrial (tax)...