We provide a simple model of endogenous product compatibility choice under Cournot competition with a network externality. Using the model, we consider how the degree of a network externality and product substitutability affects the choice regarding product compatibility. In particular, if the...

Using the Hamilton–Slutsky extended endogenous timing game of observable delay framework, we analyze the endogenous timing of tariff policy in the presence of a time lag between production and trade decisions. We particularly focus on the strategic relationships between the government of the...

In this paper, we examine strategic R&D policy for quality-differentiated products in a thirdmarket trade model. We extend the previous work by adding a third exporting country, so that the market structure is international triopoly. We show that the presence of the third exporting country...

We develop a model of product (i.e., quality-improving) research and development (R&D) investment competition in a horizontally differentiated duopoly. In particular, based on a third-country market model, we consider the optimal product R&D investment policy under international rivalry in the...

Based on a model of environmental quality differentiated products, we explore how an emission tax charged on consumers who choose an environment-unfriendly good, i.e. a consumer-based emission tax policy, affects the unit emission level of the product, the environment, and consumer and producer...

type="main" xml:id="twec12119-abs-0001" <title type="main">Abstract</title> <p>We consider whether a free trade policy is superior to tariff policies in the presence of a time lag between production and trade decisions. We show that the preferable choice between a free trade policy and a time-consistent tariff policy depends...</p>

Chi (1999) shows that the durable-good monopolist facing the Coase problem not only over-supplies, but decreases the price per unit of quality, so that the high-demanded consumers do not postpone their purchase. The results derived by Chi are re-examined in the case of a fixed cost function of...

By focusing on the constructive and combative spillover effects of the firms’ investment in research and development (R&D), we develop a horizontally differentiated duopoly model in which R&D investment used to improve product quality influences consumer preferences and the choice of...

We examine the optimal R&D subsidy/tax policy under a vertically differentiated duopoly. In a significant departure from the existing work, we consider the case of asymmetric costs of product R&D where there is a small technology gap between firms. In our analysis, the endogeneity of quality...