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Foreign direct investors face uncertainty about government's type of the host country. In a two period game, we allow the host country's government to mitigate such uncertainty by sending a signal through fiscal policy. Our main finding states that a populist government may mimic a conservative...
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This paper models oligopolistic competition among potential multinational firms in an environment of firm heterogeneity, incomplete information on costs, and strategic interactions. We show that foreign direct investment is more likely if it can serve as a signal of productivity in an...
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Costly signaling is a mechanism through which the honesty of signals can be secured in equilibrium, even in … interactions where communicators have conflicting interests. This paper explores the dynamics of one such signaling game: Spence …
Persistent link: https://www.econbiz.de/10009754763
This series of discussions presents commentaries and a rejoinder on the economic perspectives on branding arising from Moorthy (Moorthy S. (2012) Can brand extension signal product quality? Marketing Sci. 31(5):756-770)
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