This study uses a unique data set of individual video game titles to estimate the effect of an exhaustive set of observable characteristics on the likelihood of a video game becoming a blockbuster title. Due to the long‐tailed distribution of the sales data, both ordinary least squares and...

Cartel detection is usually viewed as a key task of either competition authorities or compliance officials in firms with an elevated risk of cartelization. We argue that customers of hard‐core cartels can have both incentives and possibilities to detect such agreements on their own initiative...

This study examines the influence of intra‐industry and extra‐industry networks on firm performance by using data on 1264 UK venture‐capital‐backed start‐up companies. The venture's network was operationalized by connecting together the various portfolio companies sharing the same...

This study examines how fluctuations in the amount of capital flowing into venture funds affect the financing of innovative startup companies and how economic downturns affect such financing. We argue that the nature of the economic downturn can cause differential effects on the investment...

Negative externalities have competitive relevance in a market when they have selective impacts – as, for example, when a product in use imposes greater costs on consumers of rival products than on other people. Because managers have discretion over aspects of product design that affect...

There is great interest in evaluating the impact of private equity investments on innovation and economic growth. However, there is no direct empirical evidence on the effects of such transactions on the innovation strategies of entrepreneurial firms. We fill this gap by examining a rich...

This paper presents the results of an experimental study on jump bidding in takeover auctions with entry costs. It provides support for signaling hypothesis behind jump bidding and analyzes how the size of the entry costs affects the bidders' behavior and their expected profits. It also shows...

Unlike most other mature industries, family firms, partnerships, and cooperatives dominate the agricultural production sector, with few corporations and limited access to capital derived from a source other than retained earnings and existing owners. However, the use of external equity capital...

This paper uses a survey on wage formation applied to 1305 Colombian firms to study wage‐setting decisions of newly hired employees. The survey indicates that wages of the newly hired are based mainly on a predefined wage structure. This may help to explain, in part, the presence of downward...

As the electric utility industry moves to Regional Transmission Organizations, there are more opportunities for merchant plants in selling wholesale energy to electric utilities. Two alternative bidding regimes are considered: (i) pay‐as‐bid and (ii) pay with market‐clearing bid. With...