There are many cases in which a firm passively invests in its competitor. The Article presents an economic analysis resolving several ambiguities in the economics literature and showing how even totally passive investment in a competitor, in an industry with only a few firms, may substantially...

We document the evolution of productivity in a steel mini mill with fixed capital, producing an unchanged product with Leontief technology. Despite almost un- changed production conditions, output doubles within the sample period (12 years). We decompose the gains into: downtime reductions, more...

Schinkel and Spiegel (2017) finds that allowing sustainability agreements in which firms coordinate their investments in sustainability leads to lower investments and lower output. By contrast, allowing production agreements, in which firms coordinate output yet continue to compete on...