We study merger waves in vertically related industries where firms can engage in both vertical and horizontal mergers. Even though any individual merger would have been profitable, firms may refrain from merging for fear of negative impacts from other mergers. When they do merge, however, they...

Credit rating agencies play a crucial role in financial markets. There are two competing views regarding their behavior: some argue that they engage in rating inflation, while others suggest that they deflate ratings. This article offers a rationale that reconciles the two opposite arguments. We...

Within the independent private value paradigm, this note first analyzes two-round sequential first-price auctions with multi-unit demand. We show that the expected price in the first round is strictly lower than that in the second round due to the “extraction effect”. We then compare the...

The incentive contract theory assumes that the principal holds all of the bargaining power. By introducing alternating offers and strategic delay into the nonlinear pricing model, we relax this assumption and analyze an infinite-horizon contract bargaining game. We attain either the...

type="main" xml:id="sjpe12041-abs-0001" <title type="main">Abstract</title> <p>We study multiple research joint ventures (RJVs) using a repeated game with imperfect monitoring. Compared with the single joint venture case, we show that cooperation in multiple joint ventures creates two advantages for participating firms....</p>

This research introduces the sequential bargaining to the standard screening model by allowing the agent to propose new contracts with strategic delay after the rejection of the principal's offer. We have found that if the difference between the types of agent are sufficiently large, the...

In the recent decade, emerging economies are rising, in which BRICS (Brazil, Russia, India, China and more recently South Africa) have distinguished themselves with their rapid development to lead the tide of the world. Investigating the exceeding development plans, policies, path selections....

In a general equilibrium framework, it is known that imitation may actually promote innovation (Aghion et al., 1997). The same effect is demonstrated with a standard oligopoly model in which one firm has the ability to develop technologies while all other firms imitate and obtain a fraction of...

A monopolist who originally charges a uniform price across all markets may switch to discriminatory pricing upon the entry of a competitor. As a result, intensified competition may lead to more dispersed prices as well as higher prices for some or all consumers.