This paper provides the first evidence about pure exporters (i.e., firms exporting all of their output to the foreign market) -- a phenomenon overlooked and cannot be explained in the existing literature. It then offers a generalized model of Melitz (2003) for examining the existence and...

Although there have been studies on the effect of slack resources on performance, the role of the environment is often ignored. To address this research question, three types of slack resources (available, recoverable, and potential) and three environmental dimensions (munificence, dynamism, and...

We show that the prevalence of prolonged tennis contests drops sharply when the ambient environment deteriorates through heat or pollution. We develop a multi-battle dynamic model to investigate how the disutility from a protracted competition shapes agents' willingness to fight on. Our theory...