We develop a theoretical model to explain the impact of market power in the product market and financial constraints on trade credit extension. Our model is based on a rational profit maximizing firm operating with a certain level of market power represented by the price elasticity of its...

This paper provides an overview of the work of Herbert Simon and his ideas about rational decision making. By his own standards, Simon is an economist who works in the tradition of Adam Smith and Alfred Marshall. The central theme in Simon's research is how human beings organize themselves in...

Numerous laboratory studies report on behaviors inconsistent with rational economic models. How much do these inconsistencies matter in natural settings, when consumers make large, real decisions and have the opportunity to learn from experiences? We report on a field experiment designed to...

The logistics service integrated network is the primary factor in the logistics integrated service. This paper analyzed both the connotation and structure of the logistics service integrated network. It elaborated on the governance logic of the logistics service integrated network in terms of...

This paper proposes a model of the psychology of behaviour in which theories of economic behaviour based on the assumption of substitutability may coexist with theories based on the assumption of non-substitutability. The whole spectrum of possibilities for substitutability between courses of...

A classical result in microeconomics is that supply is more elastic in the long run than in the short run. This result is obtained from Le Chatelier's principle in a static environment. I build a more realistic, dynamic model in which firms take into account intertemporal relations. The...

A fast-growing legal literature commenting on a set of empirical papers alleging anticompetitive effects of common ownership claims that the reported effects, if true, would imply that corporate executives violate their fiduciary duty: whereas acting in the interest of common owners can help...

The volume of Initial Coin Offerings has risen steeply with an all-time high market capitalisation of close to USD 1 trillion in December 2017. Since then the digital asset market has slumped, retreating to merely approximately USD 200 billion in mid-2018. Stakeholders of the crypto industry...

Conventional wisdom suggests that more intense competition will lower firms' profits. We show that this may not hold in a channel setting with exclusive retailers. We find that a manufacturer and its retailer can both become worse off if their competing manufacturer and retailer with...