In this paper, we consider two firms diffusing incompatible technologies and their decision of consumer targeting. The technology adoption is made in two steps. First, once the firms sell their products to their respective targeted consumer, the technology is diffused successively by...

The author reexamines the Schmalensee effect from a dynamic perspective. Schmalsensee's argument suggesting that high quality can be signaled by high prices is based on the assumption that higher quality necessarily incurs higher production cost. In this paper, the author argues that firms...

The authors reexamine the Schmalensee effect from a dynamic perspective. Schmalsensee's argument suggesting that high quality can be signaled by high prices is based on the assumption that higher quality necessarily incurs higher production cost. In this paper, the authors argue that firms...

Abstract Civil laws or commercial laws in many countries stipulate the liability of the public host whereby a public host is liable for the losses due to damage or lost of the property of the guest left to the host. In this paper, we consider the situation in which the value of the property is...

Abstract In this paper, we argue that there is strategic complementarity in criminal behavior. Strategic complementarity arises because the apprehension probability that affects the crime rate depends on the crime rate itself. The natural consequence is the possible multiplicity of the...

Abstract I analyze a model of patent races for COVID-19 vaccines under alternative liability rules. The first inventor of the vaccine gets the monopoly rent, but must assume full liability from its side effects. In this model, firms choose two kinds of investments, one for inventing a vaccine...

Abstract In this article, we extend the model of Newman, H., and D. Wright. 1990. “Strict Liability in a Principal-Agent Model.” International Review of Law and Economics 10: 219–231 and strengthens their result that the strict liability can attain social optimum in a principal-agent...

This paper investigates the possibility of signal jamming in games with multiple informed parties whose interests are conflicting. The possibility that signal jamming occurs in equilibrium depends on the observability of individual signals. Paradoxically, if the receiver can observe individual...

Abstract In an influential paper, Choi and Kim (2010) established the invariance result that given a fixed network capacity, the average waiting times are identical regardless of net neutrality. In this paper, we argue that their result relies on the assumption that the distribution for content...