This paper examines the preferences of a foreign firm and a welfare-maximizing host country government over two modes of foreign direct investment (FDI): de novo entry by the foreign firm and acquisition of the domestic incumbent. Two crucial features of the model are the presence of network...

This paper examines the preferences of a foreign firm and awelfare-maximizing host country government over two modes of foreigndirect investment (FDI): de novo entry by the foreign firm andacquisition of the domestic incumbent. Two crucial features of the modelare the presence of network...

A firm may allow customers to learn the value of its product prior to buying it. This increases their willingness to pay, even though it also leads some not to buy. That strategy may also be used as a competitive tool to increase its product's attractiveness. This paper examines competition...