Unilateral Spillovers Between East and West and Quality Competition

We model a two-stage duopolistic competition in a vertically differentiated ekstern market between the eastern and western firms. In the first stage firms compete in R&D, and in the second stage in prices. Consumers in eastern market are distributed uniformy according to their income, and purchase at most a single unit of the product. The R&D activity improves the quality of the product. There are unilateral spillovers from the western firm which produces the higher quality to the eastern firm which produces the lower quality. The eastern firm can also imitate, to some degree, the western product. We show that if (1) not all consumers have purchased the good initially, (2) the ekstern firm has a high rate of absorbing information out of the western firm, (3) the western firm does no learn from the eastern firm, then no firm may have an incentive to deviate unilaterally from the equilibrium in which the eastern firm is the leader an the western firm is the follower. We compare this equilibrium with the one in which only the western firm conducts R&D; the eastern firm increases the quality of its product solely through imitation. We show that under assumptions (1).(3) listed above and for absorption rate close to 1, the welfare level in the eastern country is higher when the eastern firm imitates only compared to the welfare level in the leader-follower equilibrium.Unilateral Spillovers, Quality Competition, eastern market

Four essays on multimarket oligopoly

Defence date: 30 January 1996Examining board: Prof. Raymond de Bondt, Katholieke Universiteit Leuven ; Prof. Stephen Martin, University of Copenhagen and EUI ; Prof. Louis Phlips, EUI, supervisor ; Prof. Jan Svejnar, University of Pittsburgh ; Prof. Robert Waldmann, EUI, Co-SupervisorPDF of thesis uploaded from the Library digitised archive of EUI PhD theses completed between 2013 and 2017-- La Pléiade and exchange rate pass-through -- Exchange rates and Cournot vs Bertrand competition -- The multimarket labour-managed firm and the effects of devaluation -- On the comparative statics for a multimarket oligopol

On Interdisciplinary Approach to Law and Economics

Introduction In recent decades we can observe growing interdisciplinary approach in social sciences, both with respect to methodology and research subject. This trend is probably most visible in economics, where new disciplines are developing dynamically, among them: behavioral economics or psychology and economics, economic sociology, law and economics etc. This is not a surprise if one takes into account that all social sciences have the same subject of study: human behavior in different environments. Moreover, the urgency of interdisciplinary approach stems from the needs of contemporary social policy, which deals which issues that lie at intersection of the social sciences, including crime, corruption, tax compliance, social inequality, poverty and discrimination. In this seminar I would like to present some recent results in two interdisciplinary areas, which form a part of law and economics. The first is behavioral law and economics, which combines psychological, legal and economic approaches to analyze human behavior in legal environment and formulate policy prescriptions. This area is already well established, moreover it was recently subject of two presentations in this seminar, therefore, I constrain myself to present some interesting research questions and hypotheses, which should be a subject of further studies. The second interdisciplinary area lies at intersection of economics, legal studies and sociology

A Note on Comparative Statics For A Labor-Managed Firm Engaged in Exporting

The behavior of a labor-managed firm (LMF) producing both for the domestic market and for export is analyzed assuming that it competes with a foreign profit-maximizing firm (PMF) in the export market. Conventional wisdom suggests that a LMF facing an increase of demand in the foreign market will cut sales in this market. We show that, with high enough sales in the domestic market, the LMF will sell less at home and more abroad after an introduction of an export subsidy. We also show that, under the same condition, the LMF will increase foreign sales after a devaluation of the domestic currency. Thus, the LMF reacts in a manner similar to that of a PMF

The multimarket labour-managed firm and the effects of devaluation

Digitised version produced by the EUI Library and made available online in 2020