We analyse the effects of 'network neutrality' proposals that seek to foreclose or severely limit market transactions. Our model reveals that rules that prohibit efficient commercial transactions between content and broadband service providers could be bad for all participants -- consumers would...

We analyse the effects of 'network neutrality' proposals that seek to foreclose or severely limit market transactions. Our model reveals that rules that prohibit efficient commercial transactions between content and broadband service providers could be bad for all participants – consumers...

I study duopolistic market for differentiated medical products. Medical providers decide whether to sell on the spot market to sick consumers or to sell through competitive insurance market to healthy consumers. While shopping for insurance consumers know only the distribution of possible...

The direct medical costs associated with obesity, smoking, and other non-healthy habits are estimated to account for more than 20% of U.S. health spending. Hence, poor health choices induce significant aggregate shift in spending away from treating competing?non preventable?medical risks and...

This paper shows how heterogeneity in patent ownership across generations and lifecycle saving considerations qualitatively change the conventional implications of patent policy for quality growth. We study a close Overlapping Generations economy that grows through sequential quality...

We study the effects of reducing intercity commuting time on urbanization process -- from Suburb to Metropolis -- that is driven by a technological advantage held by the Metropolis. In each period, a new generation of workers that are heterogeneous with respect to ability is born. Workers can...

Endogenous accumulation of human capital increases labor productivity and promotes technological progress in the medical industry. Technological progress lowers the relative price of health services. The rising income and decreasing price of health services allow the elderly to prolong their...

We show how technological leader gains from inviting an entrant into R&D competition to improve over existing patented technology, as the entrant takes complementary R&D effort, and the demand for both current and improved technologies is increasing with aggregate probability for successful...