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...

"R&D, Innovation and Competitiveness in the European Chemical Industry" explores the science and technology base and the dynamic performance of the European "system of innovation" in the chemical industry, with particular attention to its contribution to economic growth through innovation and...

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...

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...

Este trabajo analiza la evolucion del crecimiento de la productividad total de los factores y del poder de mercado en España en el periodo 1983-1996. Los datos utilizados son un amplio conjunto de empresas individuales de todos los sectores, excepto el financiero. Se comprueba que la forma...