Economists have debated the extent to which strengthening patent protection spurs or detracts from technological innovation. This paper examines the reduction of software copyright protection in the Lotus v. Borland decision. If patent and copyright protections are substitutes, weakening of one...

We analyze the optimal strategy of a high-quality incumbent that faces alow-quality ad-sponsored competitor. In addition to competing throughadjustments of tactical variables such as price or advertisingintensity, we allow the incumbent to consider changes in its businessmodel. We consider four...

We analyze the optimal strategy of a high-quality incumbent that faces a low-quality ad-sponsored competitor. In addition to competing through adjustments of tactical variables such as price or the number of ads a product carries, we allow the incumbent to consider changes in its business model....

The Asian financial crisis has devastated East Asia in many aspects. While social unrest was witnessed in some states, social problems have arisen in others because of the reforms undertaken. States undergoing reforms are learning their lessons at a very expensive price. These are lessons...

In Cournot's model of complements, the producers of A and B are bothmonopolists. This paper extends Cournot's model to allow for competitionbetween complements on one side of the market. Consider two complements,A and B, where the A + B bundle is valuable only when purchasedtogether. Good A is...

We study competitive interaction between profit-maximizing firms thatsell software and complementary goods or services. In addition totactical price competition, we allow firms to compete through businessmodel reconfigurations. We consider three business models: theproprietary model (where all...

type="main" <p>We present a theory for why it might be rational for a platform to limit the number of applications available on it. Our model is based on the observation that even if users prefer application variety, applications often also exhibit direct network effects. When there are direct...</p>