We study a structural model of R&D alliance networks in which firms jointly form R&D collaborations to lower their production costs while competing on the product market. We derive the Nash equilibrium of this game, provide a welfare analysis and determine the optimal R&D subsidy program that...

Workers can have good or bad work habits. These traits are transmitted from one generation to the next through a learning and imitation process, which depends on parents' investment in the trait and the social environment where children live. We show that if a sufficiently high proportion of...

Recent theoretical work has examined the spatial distribution of unemployment using theefficiency wage model as the mechanism by which unemployment arises in the urbaneconomy. This paper extends the standard efficiency wage model in order to allow forbehavioral substitution between leisure time...