We study merger waves in vertically related industries where firms can engage in both vertical and horizontal mergers. Even though any individual merger would have been profitable, firms may refrain from merging for fear of negative impacts from other mergers. When they do merge, however, they...

A model of heterogeneous firms with multiple products and two production factors (labor and capital) is used to study how trade liberalization affects firms' choices through both product and factor markets. Trade liberalization is shown to always redistribute capital toward more efficient firms...

We investigate the R&D portfolio choices of multiproduct firms. When a firm increases cost-reducing R&D investment in a given product, its rivals will modify their entire R&D portfolios by reducing R&D investments in that particular product and increasing R&D investments in other competing...

Due to the quick advancement of science and technology, the services sector which has a high content of knowledge and technology has experienced globally expeditious development in the past decade. Development in general and the growth of Knowledge Intensive Business Services (KIBS) such as...