Showing 1 - 10 of 18
There has been substantial growth in rates of new-car leasing over the last few decades. Building on recent theoretical research, we construct a model of the leasing decision in which leasing mitigates adverse selection and reduces transaction costs, but moral hazard limits its use. In our...
Persistent link: https://www.econbiz.de/10011122014
I consider the use of defensive publishing by a firm with a patentable innovation in hand. Such publishing discloses technical information to rivals and foregoes the publisher’s legal right to exclude, but also prevents rivals from patenting. My analysis identifies why firms choose defensive...
Persistent link: https://www.econbiz.de/10010931481
Persistent link: https://www.econbiz.de/10006821738
Firms selling multiple quality-differentiated products frequently alter their product lines when a competitor enters the market. We present a model of multiproduct monopoly and duopoly using a general "upgrades" approach that yields a powerful analytical framework. We provide an explanation for...
Persistent link: https://www.econbiz.de/10005571764
We propose a framework for analyzing transformations of demand. Such transformations frequently stem from changes in the dispersion of consumers' valuations, which lead to rotations of the demand curve. In many settings, profits are a U-shaped function of dispersion. High dispersion is...
Persistent link: https://www.econbiz.de/10005761474
Most traffic delays in regional evacuations occur at intersections. Lane-based routing is one strategy for reducing these delays. This paper presents a network flow model for identifying optimal lane-based evacuation routing plans in a complex road network. The model is an integer extension of...
Persistent link: https://www.econbiz.de/10005143980
Persistent link: https://www.econbiz.de/10005261731
Persistent link: https://www.econbiz.de/10010542546
Persistent link: https://www.econbiz.de/10010626539
A number of recent papers have analyzed leasing in the new-car market as a response to the adverse-selection problem in the used-car market originally explored in the seminal 1970 paper by George Akerlof. In this paper we consider a model characterized by both adverse selection, as in these...
Persistent link: https://www.econbiz.de/10008646519