This paper presents important dimensions of collaborative interfirm relationships in spatial geography and temporal cross-generational ties between economic actors. Based on field studies utilizing in-depth long interviews with 20 rice processors in Taiwan, we find that the history of the...

This study applies the vertical differentiation model to issues of channel choice. The primary goal is to examine how channel structures may influence a firm's strategies and consumer welfare. Because our concerns are more about coordination rather than competition, the effects of strategic...

It is a very robust conventional view that profit taxation has no impact on the output level even in the presence of evasion with a random audit scheme. In addition, the firms' evasion and production decisions are separable as well. In this note we show that if the firm evades tax via...

Using data for 541 Taiwanese listed companies over the 1994-2009 period, this paper examines the effect of unexpected exchange rate exposure on the value of the enterprise and the determinants of exchange rate exposure in Taiwan. The empirical evidence shows that about 25% of listed companies...

Bonanno and Vickers (1988) show that vertical separation is profitable and is of interest to manufacturers collectively, as well as individually, provided that the franchise fees can be used to extract the retailers¡¦ surplus. However, their analysis is derived within the goods market only,...

A number of theoretical studies have explained the existence of arbitrage opportunity with so called ¡§noise traders¡¨ (e.g., De Long et al., 1990; Shleifer and Vishny, 1997; Abreu and Brunnermeier, 2002). In fact, noise traders can create the arbitrage opportunity because they are quite influential...

We study the equilibrium with the quantity setting behavior and price setting behavior of firms in a duopoly under relative profit maximization with constant conjectural variations, and arrive at the following results. 1) Conjectural variations of firms are irrelevant to the equilibrium of a...

The formation of R&D consortia can provide enterprises with many competitive advantages and allow them to achieve economies of scale. Therefore, R&D consortia are an important way of enhancing technical capacity, reducing cost and risk, and maintaining the competitive advantages of enterprises....

A disadvantage of multiple choice tests is that students have incentives to guess. To discourage guessing, it is common to use scoring rules that either penalize wrong answers or reward omissions. In psychometrics, penalty and reward scoring rules are considered equivalent. However, experimental...

The public goods problem (Hardin, 1968) either viewed as a problem of extraction or that of contribution has had a long history in the Social Sciences.Our experimental design uses a standard Voluntary Contributions Mechanism (VCM) game with a moderately large group of ten and face-to-face...