We provide an alternative explanation for the commonly observed FDI in developed countries (DCs) considering a vertically related market structure and endogenizing vertical technology transfer (VTT). We show that even though VTT is more costly in a less developed country (LDC), a multinational...

The introduction of new digital production and distribution technologies may alter the firms' strategy sets, as they are not able to commit credibly to quantity strategies anymore. Mixed oligopoly markets may emerge where some companies compete in prices, while others adjust their quantities....

Electronic coordination may drastically reduce transport costs, especially for digital or digitalizable products where local markets may actually shrink to a point in space. In the present paper we use a model with differentiated products to analyze the impact of declining transport costs on...

Do firms have proper incentives to invest in electronic coordination? We discuss this question in an oligopoly model with a local firm and a distant competitor that may reduce transport costs by investing in electronic coordination. In a two-stage game with investment in the first stage and...

What is the appropriate degree of centralization in the context of industrial policy? The basic advantage of centralization results from internalization of external effects. While most of the literature stresses the superior information of regional authorities as a countervailing force, the...

Die formal verwandten Phänomene Lernkurven- und Netzwerkeffekte sind in Oligopolmärkten häufig anzutreffen. Im vorliegenden Papier wird untersucht, ob in solchen Märkten ein Anreiz zur Kooperation zwischen einem Technologieführer und potentiellen Konkurrenten besteht. Die Vorteile einer...

Recent econometric studies only emphasize the role of long-term demand expectations and technological capability. They neglect the impact of buyer market structure on innovative efforts of input suppliers. This paper deals with the effects of supplier and buyer market concentration, and...

This paper develops a tractable model for the computational and empirical analysis of infinite-horizon oligopoly dynamics. It features aggregate demand uncertainty, sunk entry costs, stochastic idiosyncratic technological progress, and irreversible exit. We develop an algorithm for computing a...

Allowing for three labor market settings (perfect competition or right-to-manage bargaining, efficient bargaining and monopsony), this paper relies on an extension of Hall's econometric framework for estimating simultaneously price-cost margins and scale economies. Using an unbalanced panel of...

This paper analyzes the impact of labor market competition and skill-biased technical change on the structure of compensation. The model combines multitasking and screening, embedded into a Hotelling-like framework. Competition for the most talented workers leads to an escalating reliance on...