This paper presents an explicit solution of a simple investment problem with entry lags and when the underlying stochastic process is arithmetic. It is shown that, without abandonment, the optimal investment plan is independent of the length of the lag. Copyright © 2000 John Wiley & Sons, Ltd.

Consumer behavior is a pervasive feature of the human circumstance, and its study has long been pursued by behaviorally oriented psychologists, among whom may be counted John B. Watson. Relatively few behaviorists have addressed these issues, however, with the result that the field of consumer...

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This paper examines the competitive advantage enjoyed by established firms over start-up firms in their choice of plant scale when entering industries. We hypothesize that established firms will enter at smaller scale because they have the opportunity to substitute other resources and advantages...

This study shows that the use or nonuse of base-rate information in probability estimation depends not just on the form of the problem, but also on the content about which the base-rate information is given. When the information is stated about characteristics of types of humans, it is used and...

Research on optimal bundling strategy has primarily dealt with the case of a monopolist and suggests that mixed bundling be adopted, as it allows for price discrimination. The overwhelming majority of consumer products, however, operate in a competitive arena, so that an adequate description of...

This paper states that the strong biases found in survey expectations do not necessarily distort economic decisions. An econometric analysis of price and profit data suggests that Swiss manufacturers do not base their production decisions on the forecasts they supply to the surveying...

Using a two-stage model, this paper studies auctions of research and development (R&D) contracts when the outcome of research is uncertain. The agent is contracted by the principal to invent a new product or a new process. The principal selects the most capable agent through an auction and...