This paper considers a three-stage game of a differentiated oligopoly: firms first make their entry decisions, then they choose production technologies and in the third stage of the game they decide product prices. The technology choice can be understood as selecting a technology from a pool of...

Observation shows that there exist two parallel sectors - the private and state sectors in the Chinese economy and a large amount of employees of State-Owned enterprises (SOEs) "waiting at home". A model embodying these characteristics of the transitional Chinese economy is developed for...

Following our previous study that established the concept of limited technology transferability, this paper analyses the equilibrium outcomes of two forms of research joint ventures (RJVs). The marginal analysis shows that market equilibria of perfect and imperfect RJVs result in a socially...

The usual belief is that the China's state enterprise reform with contract management responsibility system has led state-owned enterprises to maximize profit. Nonetheless the poor performance of state-owned enterprises after the reform relative to other forms of enterprises remains a puzzle. As...

Technological progress as a major source of economic development stems from the interaction of two types of innovations, drastic and incremental. While the former sets the fundamental pace of economic progress by redefining production possibilities as Schumpeter strongly emphasized, the latter...

Causal observation shows that many developing countries adopt certain strategic trade measures such as export subsidies and domestic currency devaluation to promote their exports. Are there any economic rationality behind these measures? The answer is yes. Using a general equilibrium model, we...

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,...

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...

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...

This paper considers the situation where some firms in an industry collude together as an RJV cartel to compete with other firms who individually engage in R&D. The analysis shows that this partial RJV cartelisation may increase market concentration. In comparison with pure R&D competition,...