When considering the preannouncement of the market introduction of a newly developed, durable good, an innovative firm faces a trade-off. By announcing early, the firm can prevent the loss of potential demand before the launch of its product. At the same time, the incumbent firm learns about the...

This paper investigates the determinants of the takeover of a foreign bank by a domestic bank, whereby the former becomes a branch of the latter, and its welfare effects for both the domestic and the foreign country. The analysis is based on a model of a bank that is supervised by an agency that...

Consider the situation faced by an individual which has to choose among different treatments available to him. For selecting the optimal treatment he needs to conjecture for each treatment how his situation after treatment would likely to be. This article proposes a semiparametric method to...

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In this paper I formulate and estimate an empirical dynamic oligopoly model that incorporates consumer learning, consumer heterogeneity and forward-looking firms. I apply this model to explain the evolution of pharmaceutical markets after patent expiration, and to address its related policy...

This paper presents a business-cycle model with heterogeneous agents that have access to complete markets but face endogenous borrowing and savings constraints. These constraints are motivated by the agents' limited commitment technology. In this environment, aggregate fluctuations are close to...

This paper studies repeated partnership games with only two public signals, the game studied in Radner Myerson and Maskin(1986) except that the stage game is discrete. It is well known that the public perfect equilibrium (PPE) payoff set is bounded away from the efficient frontier in this class...

We develop a general equilibrium model of trade with endogenous human capital acquisition in job specific skills and imperfectly observable skills. We show that even if there are no ex-ante fundamental differences between countries there may be equilibria under international trade with...

In this paper we consider the properties of a simple test of parameter restrictions based on standard two-step efficient GMM estimators. The test is computed simply as the difference between the minimised values of the GMM criterion function in the restricted and unrestricted models. We compare...

This paper shows that in a dynamic context, under weak assumptions, the presence of payoff shocks can shrink the equilibrium set to a singleton. We study a model with a continuum of fully rational agents who switch between two actions or states over time (e.g., working in different sectors,...