In this paper, we study the generalized Nash bargaining solution of bilateral bargaining in any given network, which is equivalent to the bilateral balanced outcome of a cooperative game with a network structure. We first establish that it is without loss of generality to focus on any...

We introduce a model of product innovation to examine how vertical mergers affect incentives to innovate. Incentives to innovate are the same for a vertically integrated platform that innovates in house and a product market gatekeeper that organizes an innovation tournament. A vertically...

We introduce a model of product innovation to examine how vertical mergers affect incentives to innovate. Incentives to innovate are the same for a vertically integrated platform that innovates in house and a product market gatekeeper that organizes an innovation tournament. A vertically...

Firms are using freemium pricing strategies in many industries, including software, mobile apps, games, and streaming music and video. Freemium combines free services supported by advertising with premium services supported by subscriptions. We obtain the firm's optimal pricing strategy when...

China and the U.S. have a close but complicated economic relationship. This note provides a fuller picture of the tightening embrace between the two countries - in terms of flows of goods and services, financial capital and people - and discusses the potential flashpoints in this relationship....

We study how the skill distribution for an economy responds to changes in the skill premium induced by trade integration. Using administrative data for Denmark (1993- 2012) and Portugal (1993-2011), we conduct a two-step analysis. In the first step we predict the skill premium changes which are...

We study how the skill distribution in an economy responds to changes in wage gaps induced by trade integration. Using administrative data for Denmark (1993-2012), we conduct a two-step empirical analysis. In the first step, we predict changes in wage gaps that are triggered by exogenous trade...