This theoretical paper examines the contributions of the neo-classical approach to the explanation of deep and persistent geographical inequalities in economic development. Central insights of each approach are combined in a model of regional economic inequality, here defined as differences in...

We study a market for a homogeneous good in which firms adjust their production decisions on the basis of imitation, learning from own experience, and local experimentation. For any fixed set of firms (more than one), long run behaviour settles on a symmetric marginal-cost pricing equilibrium....

I examine a Knightian model of entrepreneurial risk and investment where in addition to the self-selection process for choosing entrepreneurs, there is an evolutionary selection process over the representation of various risk attitudes. Under a standard evolutionary dynamic, rather than...

Disaggregated data from 30 two-digit manufacturing industies in the Eastern and Western parts of unified Germany are used to estimate employment from three skill categories of blue collar workers. Employment elasticities are uniformly higher in the East, and for unskilled labour. The former...

Some preliminary results are presented from a pilot study of the contracting-out of public services in Scotland. The results suggest that dispute resolution works smoothly and efficiently in these contracts but that there are increases in costs of administration at the bidding stage.

In this paper some determinants of discrete shifts from production franchise agreements to vertical integration are investigated from a new angle. Production franxhise agreements are considered as an organizational innovation for the diffusion of process and/or product innovations. A common...

Institutional, or sector-by-sector, input-output tables have traditionally been used in regional and interregional modelling. The paper examines the origins of this tradition and argues instead both theoretically and empirically for the integration of Make and Use sub models in interregional...

This paper considers a public good game with heterogeneous endowments and incomplete information affected by extreme free-riding. We overcome this problem through the implementation of a contest in which several prizes may be awarded. We identify a monotone equilibrium, in which the contribution...

We investigate the effect of introducing costs of complexity in the a justification for stationary equilibrium strategies in the class of games where complexity costs matter. As is well-known, in this game every individually rational allocation is sustainable as a Nash equilibrium (also as a...

The fundamental contribution of the paper is to contest the view that greater market contestability has non-negative effects on market performance. In a model where employees pose a threat of potential entry, we demonstrate that a reduction in barriers to entry causes no fall in industry price...