This paper presents a model of technology invention in an emerging market. Managers wait and adopt the standard technology in the hope to free-ride on the effort level of another manager who may invent a superior technology. The more managers who adopt the standard technology, the more their...

This paper considers a semiparametric regression model in which the error term is correlated with the nonparametric part. An example of this regression model can be found in structural models of dynamic oligopoly. Dynamic oligopoly is a situation in which firms' price-settings (or...

The general equilibrium model of market pricing and the duality theory of linear programming (LP) are paradigmatic expressions of the duality relation between quantities and prices. While LP is canonical, the market duality found in general equilibrium theory is regarded as the more...

We examine, in a network market open to competition, various mechanisms of allocating and funding ''universal service obligations'' among agents (rival operators and consumers). The obligations we consider are geographic ubiquity and non discrimination. We analyze, from both the efficiency and...

The interaction between firms' incentives to learn, communicate and to develop their product innovation is studied for different settings. Firms learn about their costs of development by investing in research. After learning, firms decide what information to reveal, and how much to invest in...

The concept of path independence (PI) was first introduced by Arrow (1963) as a defense of his requirement that collective choices be rationalized by a weak ordering. Plott (1973) highlighted the dynamic aspects of PI implicit in Arrow's initial discussion. Throughout these investigations two...

This paper examines the issue of sustaining free trade when countries receive imperfect private information about each other's non-tariff barriers. Because the countries can misrepresent their private briefs about other countries' protection levels, the punishment scheme to deter deviations from...

For economies in transition, the issues of property rights protection provided by the state and implications for economic performance are very important. The paper develops an endogenous growth model with incomplete capital markets and the level of public protection of property rights determined...

This paper is concerned with some theoretical issues in cooperative multilateral trade policy reform. The focus of the paper is on the structure of the policy reform problem, particularly as it applies to piecemeal policy reform, and on the similarity in roles that can be played by income...

This paper presents a general likelihood-based framework for inference in panel-VAR models with cointegrating restrictions. The cointegrating relations are restricted to each cross-section while the rest of the model is unrestricted. The homogenous restriction of common cointegrating space is...