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This paper considers an incumbent firm that is faced with a potential entrant in a vertically differentiated market. It demonstrates than an incumbent firm cannot prevent entry through product proliferation because of a commitment problem.
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We introduce technological differences in a Heckscher-Ohlin model and study how the technology and endowment differences interact to determine the effects of trade on factor prices.
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Models which estimate influenza mortality probably overestimate this mortality because their baseline estimates include only nonepidemic weeks. We present a stochastic frontier estimation model which better reflects influenza mortality.
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