This paper studies an effect of a horizontal merger where a product consolidation by the merged firm may alter the substitutability in the industry. We show that as the number of firms in the industry increases, this type of merger becomes profitable for merging firms, while unprofitable for...

This paper models a dynamic innovation process to examine the relationship between levels of R and D and market structure. In contrast to most of the literature, here R and D increases firms' knowledge stocks, making future R and D less costly. This s a feedback by which market structures can...

The aim of this work is to test the Gibrat's Law hypothesis for Brazilian firms. Gibrat''s Law establishes that firm growth is a random walk, it means that the probability of a given proportionale change in size during a specified period is the same for all firms in a given industry. This work...

In a vertically differentiated oligopoly, firms raise cost-reducing alliances before competing with each other. It is shown that heterogeneity in quality and in cost functions reduces individual incentives to form links. Furthermore, both differentiated Cournot and Bertrand competition...

This note uses a three-stage delegation-licensing-quantity game to study the licensing of a cost-reducing innovation by a patent-holding firm to its competitor. It is shown that licensing is less likely to occur under strategic delegation compared to no delegation.

This paper investigates productivity improving merger activities between a public firm and a private firm in mixed oligopoly. We assume that the merged firm has two plants (formerly, firms). We show that both owners of a public firm and a private firm want to merge by coordinating their...

This note shows that when products are complements in the mixed duopoly market, both public and private firms choose excess capacity. This contrasts with substitute case, where public firm strategically chooses under-capacity while private firm keeps holding excess capacity.

In this essay I assess the role that is played by the two characteristics of high-tech firms in shaping their corporate strategies: short product cycles and the involvement of intangible assets in production. Short product cycles impose high-tech firms to seek complementary assets for entering...

In this paper, we extend the model of R and D network formation by Goyal and Moraga-Gonzàlez (2001) by allowing for imperfect spillovers among linked firms. We show that the complete network maximizes industry profit if spillovers for linked firms are below a threshold level. Furthermore, this...

This paper models a dynamic innovation process to examine the relationship between levels of R and D and market structure. In contrast to most of the literature, here R and D increases firms' knowledge stocks, making future R and D less costly. This s a feedback by which market structures can...