The literature on experimentation and learning typically imposes a special dynamic structure: the only connection between periods is the updating of beliefs. Hence, both the present action and present signal realization only affect the future by changing the distribution of future beliefs. In...

We introduce the possibility of trade in dynamic models with externalities and evaluate the consequences on the capital accumulation process, the market-clearing prices and policy making. We consider mixed economies characterized by a blend of strategic and nonstrategic sectors. An equilibrium...

Typically the literature on experimentation and learning imposes a special dynamic structure: the present signal realization only affects the future by changing the distribution of future beliefs. In many contexts however the model may have "signal dependence", that is, the current signal may...

This paper uses a vertical differentiation duopoly framework to analyze firms’ relocation decisions, when the removal of trade barriers or restrictions on capital outflows or inflows (“globalization”) allows them to serve the domestic market through foreign plants in low-wage countries....