This paper presents a model of investment in which heterogeneous firms choose between new investment and acquisitions. New investment involves purchasing a new plant for an existing variety.
This paper investigates the link between firms' geographic configuration and market power in imperfect markets. We consider two related setups.
We consider an incumbent firm and a more efficient entrant, both offering a network good to several asymmetric buyers, and both being able to price discriminate.
This paper analyzes the optimal advertising and price policies of a monopolist who sells a new experience good over time to a population of heterogeneous forward-looking buyers.
We show that the choice of an independent board serves as a commitment by management that it will abstain from ex post decisions that are not in shareholder interests.
Most goods and services vary in numerous dimensions. Customers choose to acquire information to assess some characteristics and not others.