In this paper, we develop an empirical strategy based on the treatment evaluation model to show (i) that sunk entry costs exist for French firms and (ii) that firms? productivity significantly affects their level of sunk costs. Given our empirical results, we extend the basic Melitz [2003] model...

This work explores and reviews the introduction of real option in the strategic management literature. The aim is to contribute to a better understanding of the origin of the real option. By distinguishing between shadow and real option, and implementing entrepreneurship in the traditional...

This paper analyzes a model of sequential parimutuel betting described as a two-horse race with a finite number of noise bettors and a finite number of strategic and symmetrically informed bettors. For generic objective probabilities that the favorite wins the race, a unique subgame perfect...

Demography-based income forecasting has recently gained enormous popu- larity. Malmberg and Lindh (ML, 2005) in an important contribution forecast global income by incorporating demographic age information where the vari- ables were assumed to be stationary. Drawing on the insights from recent...

We study the relations between compensation schemes and risk aversion of managers in a strategic framework. We first show that the use of relative performance evaluation (RPE) in compensation contracts reduces the equilibrium profits of Cournot firms if managers are not too risk averse. Second,...

Market power of workers on wages is bound to affect economic performances. This paper focuses on this issue and analyse the influence of bargaining structures on growth and labor market functioning. To achieve this, we construct an endogenous growth model where growth appears as the result of a...

The aim of this work is to establish empirically with a structural equation model (SEM) the existence of links between the options perceived by the members of an industry, the expectation of future rents produced by the exercise of these options and firm or industry specific factors. The...

This paper examines the empirical interplay between economic growth and greenhouse gas emissions using panel data.Relying on nonparametric methods, we find evidence supporting specifications which assume the constancy of the relationship between per capita CO2 emissions and per capita GDP during...