Borrowing from the bundling literature, the paper presents a novel model of vertical and horizontal differentiation applied to transport decisions: households differ in their preferences for transportation modes — cars vs public transport — and in the amount of travel. Using few observables,...

This article takes the following question as a point of departure: if one firm is more efficient than a rival does it have cause to initiate a price war? In order to study the question, we rely on a simple duopoly model and try to make especially heavy use of the concept of barrier to mobility....

This paper provides a game theoritic rationale for the use of standards of behavior in hierarchies. lt proves that the common knowledge of such standards in a long term relationship generates tacit cooperation as long as the time horizon is far enough and that intermediary observations are...

In a two-region model of bilateral trade with global pollution, we study how the unilateral implementation of emissions taxes affects the region. To offset the decrease in its industry?s competitiveness, the regulator of the region may implement borders adjustments such as export subsidies or...

The starting point of this note is the difficulty to implement planning in the firm. In contrast to the traditional economic approach which focuses on incentives, the basic idea of the paper is to view complexity as the essence of the problem. In such case, planning and competition can no longer...

Value based management was considered as the major managerial innovation of the nineties: managers were to supposed to be turned into owners through redesigned compensation packages including value creation metrics such as EVA and the like, increased influence of shareholders on firms’...