Issue 1

March 2012

Firm Heterogeneity, New Investment and Acquisitions

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.

Localized Competition, Heterogeneous Firms and Vertical Relations

This paper investigates the link between firms' geographic configuration and market power in imperfect markets. We consider two related setups.

Exclusionary Pricing When Scale Matters

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.

Dynamic Informative Advertising of New Experience Goods

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.

Competition and Managerial Incentives: Board Independence, Information and Predation

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.

Information Gathering Externalities for a Multi-Attribute Good

Most goods and services vary in numerous dimensions. Customers choose to acquire information to assess some characteristics and not others.