The paper establishes the effect of free-riding behavior by partners in a JV for a new product, when input to the JV are not verifiable. It then studies the ways in which the firms may control the incentives to free-ride and the effects that those agreements produce on the quality of the...

The paper analyzes the question of which cost characteristics are exhibited by the rms that exit an oligopolistic market when costs are asymmetric and firms can credibly be forced out by the remaining competitors. The main results are: (i) if reentry is impossible (due to the presence of large...

The present article provides a unied explanation for several phenomena related to advertising by rms. (i) Advertising without repeat purchase of the product, (ii) advertising from established brands, or post-introductory, (iii) simultaneous advertising from low and high quality rms, (iv) its...

We study the differences in the impact of trade restrictions on the level of imports (e.g. 200,000 automobiles per years) and restrictions defined in terms of market shares (e.g. 10% of the market). We argue that if domestic firms enjoy some market power proportional trade restrictions have a...

In this paper we show that in a bargaining situation the seller may not necessarily want to fully exploit communication possibilities. In the standard two-period bargaining model with one-sided incomplete information, the seller, who owns an indivisible good, makes oers which the buyer can...

The traditional analysis of the location choice by a monopoly has been developed thinking of static monopolies, namely monopolies selling non-durable goods. At the same time, the spatial approach has been widely used in applications to the choice of product design. In a spatial context, the...

Comparative advertising content differs from generic. We discover that dissipative advertising has consequences depending upon content and cost. Comparison advertising may trigger legal action by rival …rms that are named. In the model an entrant signals its product quality. By a comparative...

In a model of behavior-based price discrimination (BBPD), we argue that sellers may have discretionary power to let buyers decide whether to be identified (e.g., creating an account) or remain anonymous (no account creation). The price equilibria generate a more fragmented market segmentation...

This paper is about technology choices in a differentiated oligopoly. The main questions are: whether the position in the product space affects the choice of technology, how changes in fixed costs affect price outcomes, the strategic responses to policy interventions. The industry is an...

We develop a theoretical model in which firms may choose multiple banking relationships to reduce the risk that financing will be denied by "relationship banks" should the latter experience liquidity problems and refuse to roll over lines of credit. The inability to refinance from relationship...