We explore the managerial implications and economic consequences of platform sharing under models of horizontal and vertical product differentiation. By using a common platform across different products, firms can save on fixed costs for platform development. At the same time, platform sharing...

Competitors often collaborate by sharing a part of their value-creating activities such as technology development, product design, and distribution, which are important elements for creating product distinctiveness across firms. This paper explores the economic consequences of competitor...

We look at imperfectly competitive markets where some consumers might be budget constrained. The set of budget constrained consumers varies endogenously with price. While the presence of such consumers reduces aggregate demand, we find that the equilibrium price under budget constrained demand...

The purpose of this chapter is to provide fresh evidence and insights on a causal link from product market competition to the nature and scope of employee involvement using a case study of two Japanese manufacturing firms. The firm’s investment decision on two kinds of innovation activities,...

Does competitive pressure foster innovation? In addressing this important question, prior studies ignored a distinction between discrete innovation aiming at entirely new technology and continuous improvement consisting of numerous incremental improvements and modifications made upon the...