Using a unique firm-level dataset from China's "Silicon Valley," we investigate how multinational enterprises (MNEs) affect local entrepreneurship and R&D activities upon entry. We find that R&D activities of MNEs in an industry stimulate entry of domestic firms into the same industry and...

Individual rationality and social optimum -- The Nash equilibrium and the Prisoners' dilemma game -- Multiple equilibriums, institutions, and cultures -- Threats and commitments -- Bargaining and patience -- Repeated games and cooperative behavior -- Incomplete information and reputation --...