Both in game theory and in general equilibrium theory there exists a number of universally stable adjustment processes. In game theory these processes typically serve the role of selecting a Nash equilibrium. Examples are the tracing procedure of Harsanyi and Selten or the equilibrium selection...

This paper is the first to introduce an algorithm to compute stationary equilibria in stochastic games, and shows convergence of the algorithm for almost all such games. Moreover, since in general the number of stationary equilibria is overwhelming, we pay attention to the issue of equilibrium...

The industrial organization of transactions has changed dramatically during the past decade (Thompson and Wright, 1988). Several scholars have discussed and documented the phenomenon of what has been called `the shrinking organization'' (Ford and Farmer, 1986; Lichtenberg, 1992). The apparent...

Network formation within the BRITE-EURAM program is investigated. We describe the role of the hub of the network, which is defined as the set of main contractors that account for most of the participations. We study the effects that the conflict of objectives within European research funding...

The human capital-augmented Solow model (Mankiw et al., 1992) has been criticized by Cho and Graham (1996) by stating that half of all countries converge to their steady state from above, i.e. from income levels above those obtained in their steady state. This is clearly at odds with the general...

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This paper focuses on the analysis of size distributions of innovations, which are known to be highly skewed. We use patent citations as one indicator of innovation significance, constructing two large datasets from the European and US Patent Offices at a high level of aggregation, and the...

We develop a model of an innovative industry to examine how information technology, by both enhancing matching efficiency and knowledge sharing, can have an ambiguous effect on the total amount of innovation. We consider a population of firms holding different knowledge expertise, and forming...

Neoclassical economists argue that competition promotes efficiency. They consider technology as given though. In the long run technological progress is an important determinant of the level of welfare and Schumpeter argued that monopoly rents help entrepreneurs to capture the gains of R&D and...

The paper studies the degree of homogeneity of innovative behavior in order to determine empirically an industry classi¯cation of Dutch manufacturing that can be used for policy purposes. We use a two-limit tobit model with sample selection, which explains the decisions by business enterprises...