The Advanced Technology Program (ATP) of the National Institute for Standards and Technology (NIST) subsidizes the R&D expenditure of large single firms at a maximum rate of 40%. The theoretical analysis herein of a monopoly innovator suggests that this subsidy rate is about socially optimal...

Suppose a firm faces a “timing problem” in its capacity decision: it must acquire capacity, a strict upper bound on production, and set its price before quantity demanded for its product is known. The paper shows that the uncertainty capacity is greater than the certainty capacity when the...

Consider a dynamic duopoly model where R&D spending is used to increase the reliability of a firm's product under two competitive scenarios: the home firm competes with a "complacent" foreign firm that does no R&D whatsoever or with a "lockstep" foreign firm that improves its product at exactly...

The paper develops a simple theoretical framework for empirical investigation of the final price, number of bids, and whether an item sold for eBay auction data collected in 2009-2010 for presidential memorabilia items. The explanatory variables include the eBay auction variables minimum bid,...

Suppose a price setting firm knows the distribution of reservation prices its customers have for an existing product. Then suppose the firm introduces a product improvement, and it is able to quantitatively evaluate the increase in performance (e.g. time saved, capacity increased, etc.) for the...

Suppose consumers demand a composite good called "baseball experience" that incorporates the value received from both attending the game in person and purchasing concessions at the stadium. It is shown that when the firm maximizes the total profit from tickets and concessions, the ticket price...

In a world dominated by large economies with flexible exchange rates and predictable market forces, quantities of currencies bought and sold would warrant very little attention. Models illustrating and explaining foreign exchange markets would focus almost exclusively on prices, i.e. exchange...