This paper explores the effects of innovation efficiency on technology gap and product diversity between a leading firm and its competitor. Our analysis shows some interesting results: when innovation efficiency is sufficiently large and increases, the leading firm may expand technology gap, and...

Combining the notion of self-worth in sociology and educational psychology with economic modeling, the present paper studies incentives on students' learning in a behavioral economic model. Allowing for 'conservativeness' to modify Bayes' rule in processing newly released information and...

This paper studies probabilistic selling with vertically differentiated products when firms compete and consumers anticipate the potential post-purchase regret raised by possibly obtaining the inferior products. Intuitively, anticipated regret hurts the attractiveness of probabilistic selling....