Within a framework of differentiated oligopolies, this paper studies how the tax incentive of a developing country on foreign direct investment (FDI) affects the structure of a specific domestic industry. Benefits from the tax incentive are analysed based upon the effects of the tax reduction on...

While the enterprise reform in China has provided incentives to its state-owned enterprises (SOEs), their poor performance relative to other forms of enterprises remains puzzling. This paper provides an answer to this puzzle by studying optimal managerial decisions under the enterprise reform.

This paper proposes a tractable alternative to Cobb-Douglas utility to resolve the problems of lack of reservation price and income effects in demand functions derived from Cobb-Douglas utility or quasilinear utility. Another advantage of this alternative is that it provides a closed-form...

The static differentiated product demand model when applied to products with rapid product turnover and declining prices, yields implausible results. One response is to explicitly model the inter-temporal choices of consumers but computational demands require restrictive assumptions on consumer...

Built on the location model, this paper studies the rivalry of two firms in an industry through two-part tariffs. It is found that kinky profit functions are responsible for the coincidence of imperfectly competitive equilibrium and cartelization outcome. A duopoly likely results in higher entry...

This paper proposes a tractable alternative to Cobb-Douglas utility to resolve the problems of lack of reservation price and income effects in demand functions derived from Cobb-Douglas utility or quasilinear utility. Another advantage of this alternative is that it provides a closed-form...

Both the theory and practice of using hedonic regressions to quality adjust inflation estimates are implicitly developed for monopolistic competitive markets. We demonstrate conditions required for consistent OLS estimation of hedonic regression for an oligopoly. To reflect firm heterogeneity,...

While the enterprise reform in China has provided incentives to its state-owned enterprises (SOEs), their poor performance relative to other forms of enterprises remains puzzling. This paper provides an answer to this puzzle by studying optimal managerial decisions under the enterprise reform.

Within a framework of differentiated oligopolies, this paper studies how the tax incentive of a developing country on foreign direct investment (FDI) affects the structure of a specific domestic industry. Benefits from the tax incentive are analysed based upon the effects of the tax reduction on...

In early 1998, the new Chinese Premier Zhu Rongji proposed an ambitious new reform plan, which aims to solve the problems of state-owned enterprises (SOEs) within three years. Among these problems, overstaff in SOEs is a key and difficult issue attracting wide concern. This paper establishes a...