This dissertation consists of the three essays on R&D project choice in the presence of compatibility externality.In the first essaywe consider a R&D contest between two firms who can choose to concentrate their research in one of two avenues or approaches. In the R&D contest, firms compete in...

I study the effects of lump-sum money creation against the background of the random-matching model of Trejos-Wright (1995) and Shi (1995). That model is interesting for the study of money creation because, alongside with the usual harmful internal margin effects, money creation has beneficial...