In today’s increasingly dynamic global economy, many industrialized nations are developing comparative advantages that are derived from human effort rather than natural status in their export industries. This is evidenced by a global pattern of shifting man-made comparative advantages...

The labor market is introduced into the standard vertical differentiation model, linking increasingly the quality of the product and the effort necessary for workers to produce it. Surprisingly, when two firms compete on the product market but are monopolies on the labor market, at equilibrium...

The effects of a patent system on the chosen strategies of duopolists in an Hotelling's line game are examined. It is found that even a patent which is not designed to reward inventors with monopoly power will increase the range of costs to R&D from which a monopoly will result. Wider patents...

The aim of this paper is to study bonus and rebate for exclusive dealers in GSM sector in Turkey, for which operators and handset manufacturers provide special incentives to dealers for exceeding specific sales targets. They develop a theoretical model of dealers and manufacturer behavior based...

The aim of this paper is to study bonus and rebate for exclusive dealers in GSM sector in Turkey, for which operators and handset manufacturers provide special incentives to dealers for exceeding specific sales targets. They develop a theoretical model of dealers and manufacturer behavior based...

This paper develops a two-country, general equilibrium model of oligopoly in which the degree of horizontal product differentiation is endogenously determined by firms' strategic investments in product innovation. Consumers seek variety and product innovation is more skill intensive than...

Eight states established deposit insurance systems between 1908 and 1917. All abandoned the systems between 1921 and 1930. Scholars debate the costs and benefits of these policy experiments. New data drawn from the archives of the Federal Reserve Board of Governors demonstrate that deposit...

Conflicting theories of the nonprofit firm have existed for several decades yet empirical research has not resolved these debates, partly because the theories are not easily testable but also because empirical research generally considers organizations in isolation rather than in markets. Here...

Efforts to strengthen the global patent system for pharmaceuticals continue to be controversial, and what will likely be a similarly fraught international debate over price controls has begun. The outcome of international negotiations and the resulting policy decisions made by each country will...

This paper provides a systematic analysis of the welfare effects of vertical integration by a monopolistic input supplier into a monopolistically competitive downstream industry. We give sufficient conditions on consumer preferences that lead to Pareto improving vertical integration. We...