Issue 1

March 1995

Bertrand Competition when Rivals' Costs are Unknown

The conclusions of the Bertrand model of competition are substantially altered by the presence of asymmetric information about rivals' costs.

Complementarity and Cumulative Learning Effects in the Early Diffusion of Multiple Technologies

This paper concentrates on the contextual diffusion of Flexible Automation production and design/engineering technologies in the Italian metalworking industry.

Investment, Cash Flow, and Sunk Costs

This paper's analysis of US manufacturing industries confirms previous research showing that cash flow and investment spending are positively correlated, even after controlling for investment demand,

Vertical Separation and Horizontal Mergers

We consider a duopoly setting consisting of two manufacturer-retailer pairs in which the observable contract between each manufacturer-retailer pair specifies a two-part tariff.

Competition and Cooperation Within a Multidivisional Firm

The strategic choice of managerial incentives is studied in a multi-agent setting using a two-stage game. In the first stage, the principal chooses incentive schemes.

Asymmetric International Minimum Quality Standards and Vertical Differentiation

The paper develops a two country model of a vertically differentiated duopoly that spans two countries which are not integrated without additional costs.

Hotelling Location Problems with Directional Constraints: An Application to Television News Scheduling

If viewers prefer to watch the news as soon as they get home from work, how should competing television stations schedule their broadcasts so as to maximize the number of viewers?