This paper investigates, both theoretically and empirically, the implications that complementary assets needed for the formation of start-ups – proxied by the ease of access to financial resources – have on the innovative efforts of incumbent firms. In particular, we develop a theoretical...

This paper provides a detailed description of the Eurace@Unibi model, which has been developed as a versatile tool for economic policy analysis. The model explicitly incorporates the decentralized interaction of heterogeneous agents across different sectors and regions. The modeling of...

This paper examines a dynamic incumbent-entrant framework with stochastic evolution of the (inverse) demand, in which both the optimal timing of the investments and the capacity choices are explicitly considered. We find that the incumbent invests earlier than the entrant and that entry...

The paper addresses the question how production capacities on an established market affect the innovativeness of firms. We analyze the strategic interactions in an oligopoly setting where firms offer an established product and have the option to offer an additional new product. We show that the...

We consider a repeated interaction between a manufacturing firm and a subcontractor. The realtionship between the two parties is characterized 1) by moral hazard, 2) by the fact that they do not have perfect knowledge about the base cost level of the project carried out by a subcontractor (the...

We consider a simple dynamic model of environmental taxation that exhibits time inconsistency. There are two categories of firms, Believers, who take the tax announcements made by the Regulator to face value, and Non-Believers, who perfectly anticipate the Regulator's decisions, albeit at a...

In this paper we explore the role of social influence for the coordination of effort choice in a game with strategic complementarities. Players are repeatedly randomly partitioned in groups to play a minimum effort game and choose their effort based on their beliefs about the minimal effort...