Unaccountable power at any layer of online life can stifle innovation elsewhere. Dominant search engines rightly worry that carriers will use their control of the physical layer of internet infrastructure to pick winners among content and application providers. Though they advocate net...

Incumbent vertical market power in deregulating markets can be anticompetitive, as seen in the current process of retail electricity restructuring. This paper uses the AT&T antitrust case’s Bell Doctrine precedent of “quarantine the monopoly” as a case study in incumbent vertical market...

This paper investigates the R&D allocation and output decisions of a profit-maximising monopolist developing a science-based family of products or processes. A comparison of the numerical solution for a model with incremental product innovation, and that with incremental process innovation,...

The paper explores the role of R&D investments reducing fixed production costs in entry deterrence. An incumbent monopolist and a potential entrant can perform R&D to reduce their fixed production costs, with bidirectional and asymmetric technological spillovers. It is shown that deterrence,...

The paper explores the role of R&D investments reducing fixed production costs in entry deterrence. An incumbent monopolist performs R&D to reduce its fixed production costs. There is a potential entrant, which can also perform R&D for the same purpose. There are bidirectional technological...

Technological progress in the economy has an impact on a monopolist's optimal choice of product quality by shifting either the demand or the cost curves. When quality is reduced in response to new technolgy we have a On the assumption that consumers with higher reservation prices for the good...

We implement a diffusion model for an innovative product in a market with a structure of social relationships. Diffusion is described with a percolation approach in the price space. Percolation shows a phase transition from a diffusion to a no-diffusion regime. This has strong implications for...

Arrow (1962) argued that since a monopoly restricts output relative to a competitive industry, it would be less willing to pay a fixed cost to adopt a new technology. We develop a new theory of why a monopolistic industry innovates less. Firms often face major problems in integrating new...

In this paper, we construct a model to study the technology transfer decision of a monopolist, with access to a finite number of technologies, under taxation. It is shown that a policy maker in a low-wage developing country cannot always increase the number of technologies transferred from a...

Africa: A continent is waking up. Not through aid or wealth from the exploitation of natural resources, but through a technological revolution. The access to affordable mobile telecommunication. Inspired by deregulation and pioneered by local champions who have taken a lead in what is today's...