Despite the empirical relevance of advertising strategies in concentrated markets, the economics literature is largely silent on the effect of persuasive advertising strategies on pricing and market structure and increasing (or decreasing) dominance. We propose a simple model of persuasive...

A common premise in prior research is that trust increases over time in relationships. Through a meta-analysis of 39 studies, we find that the bivariate correlation between trust and relationship duration (i) is on average, positive and small and (ii) varies significantly across studies...

We formalize firms’ research and development (R&D) diversification decisions during the pre-market phase of an emerging standards setting. Capturing transaction costs, resource-based considerations, and network effects in a two-player model, in which both agents are fully diversifiable and...

We argue that organization design needs to play a more active role in the explanation of differential performance and outline a set of ideas for achieving this both in theoretical and empirical research. Firms are heterogeneous in terms of 1) how well they do things, capturing persistent...

This paper studies five mergers in the European wireless telecommunication industry and analyzes their impact on prices and capital expenditures of both merging carriers and their rivals. We find substantial heterogeneity in the relationship between increases in concentration and carriers'...

Mainstream logic supports the idea that platforms bring large benefits to firms, especially smaller ones, by opening up access to a broader set of consumers and making firms' products easier to find. However, this argument mostly applies to transaction platforms that match consumer preferences...