We assess empirically the micro-foundations of producers' sticky pricing behaviour. The intertemporal profit function considered accounts for various functional forms of menu costs. The focus is on the analysis of multiproduct plants, and the menu costs therefore also allow for economies of...

We develop a simple model in which a firm considers a number of investment projects. Because of limited financial resources, the firm can undertake at most one project. In line with the literature on real options we stress features like irreversibility, uncertainty and the possibility of...

A firm sets up a network of information generating alliances to reduce technological uncertainty. This alliance group creates both advantages associated with similarity of existing partners and limitations due to restricted choice of new partners. Our model analyses the conditions (technological...

We analyse a game theoretical model in which policy makers have superior knowledge about the working of the economy relative to voters. We show that parties increase their chances of reelection by basing their policies on the model that best fits in with their preferences. Moreover, we show that...

The primary goal of this paper is to improve our understanding of the complex relationship between the positioning of companies in alliance networks and their innovative performance. In particular, we expect that a firm's innovative performance depends partly on its position in specific network...