This paper develops a mathematical model of innovation in technology with two main characteristics. First, it discusses the endogenously made decision on not only how much to innovate, but also, how much to imitate. Second, it demonstrates that the decision to innovate or imitate are not...

Double marginalization is a common inefficiency in vertical markets. One theory of the source of double marginalization – even when two-part tariff contracts are available – is downstream risk aversion. When demand is uncertain, two-part tariffs with large fixed components can expose the...

"Network adequacy regulations" expand patients' access to hospitals by mandating a lower bound on the number of hospitals that health insurers must include in their networks. Such regulations, however, compromise insurers' bargaining position with hospitals, which may increase hospital...