This paper analyses the implications of bargaining between buyers and sellers on the competitive outcome in a homogeneous good industry. Bargaining creates a competitive equilibrium in which some inefficient sellers coexist with efficient leading to productivity dispersion...

It is shown that spillovers can enhance private returns to innovation if they feedback into the dynamic research of the original inventor (Internalized spillovers), butwill always reduce private returns, if the original inventor does not benefit fromthe advancements other inventors build into...

The UK’s business R&D (BERD) to GDP ratio is low compared to other leading economies,and the ratio has slowly declined over the 1990s. This paper uses data on large UK firms toanalyse the link between R&D and productivity over the 1989-2000 period. Using aproduction function approach, and a...

Productivity, or the amount of output produced by a given number of inputs,can be measured in a number of ways;1 the focus of Governmentpolicy, and much of the theoretical and empirical literature, is on labourproductivity, which provides the theme of the discussion in this review.A central...

Market share objectives are prominent in many industries, especially where man-agers pay much attention to league table rankings. This paper explores the strategicrationale for giving managers incentives based on market share in an oligopoly com-peting in strategic substitutes. Moreover, the...

In 2000, the Lisbon Agenda set out an ambitious plan to make the EuropeanUnion “the most dynamic and competitive knowledge-based economy inthe world”. The Agenda suggested a need for action on three broad fronts:the first explicitly macroeconomic; the second explicitly microeconomic;the third...

We analyze empirically the impact of urban agglomeration on Italian wages. Using micro-data from the Bank of Italy'sSurvey of Household Income and Wealth for the years 1995, 1998, 2000 and 2002 on more than 22,000 employeesdistributed in 242 randomly drawn local labor markets (30 percent of the...

The paper reviews the macroeconomic data describing the British economy during theindustrial revolution and shows that they contain a story of dramatically increasing inequalitybetween 1800 and 1840: GDP per worker rose 37%, real wages stagnated, and the profit ratedoubled. They share of profits...

I analyze empirically the effects of both urban and industrial agglomeration on men’s andwomen’s search behavior and on the efficiency of matching. The analysis is based on the ItalianLabor Force Survey micro-data, which covers 520 randomly drawn Local Labor Market Areas(66 per cent of the...

We present a general Cournot model in which each ¯rm may sell multiplequality-di®erentiated products. We use an upgrades approach, working not with theactual products, but instead with upgrades from one quality to the next. The prop-erties of single-product Cournot models carry over to the...