This article explores the reasons why GMM estimators of production function parametersare generally found to produce unsatisfactory results. I attribute this finding to the inaccurateconstruction of the variables used in production function analysis. In particular, I suggest that theproblem lies...

We present a Hotelling model of price and advertising competition between prescription drugs that differ in quality/side effects. Advertising results in the endogenous formation of two consumer groups: brand loyal and non-brand loyal ones. We show that advertising strategies are strategic...

This paper takes a new look at the effects of mergers on innovation by analysing the relationship between ex-ante technological (and product) relatedness of acquirers and targets and post-merger performances. The analysis is conducted using data on consolidations in the pharmaceutical industry...