Issue 2

Volume 19 JOURNAL OF ECONOMICS & MANAGEMENT STRATEGY
Summer 2010

Share the Fame or Share the Blame? The Reputational Implications of Partnerships

Luís Almeida Costa and Luís Vasconcelos
We use an adverse selection model to study the dynamics of firms' reputations when firms implement joint projects. We show that in the case of joint projects a firm's reputation does not necessarily increase following a success and does not necessarily decrease following a failure.

Information Gathering and Marketing

Heski Bar-Isaac, Guillermo Caruana and Vicente Cuñat
Consumers have only partial knowledge before making a purchase decision, but can acquire more-detailed information. Marketing makes it easier or harder for these consumers to do so.

Competition Among Health Plans: A Two-Sided Market Approach

David Bardey and Jean-Charles Rochet
We set up a two-sided market framework to model competition between a Prefered Provider Organization (PPO) and a Health Maintenance Organization (HMO). Both health plans compete to attract policyholders on one side and providers on the other. The PPO, which is characterized by a higher diversity of providers, attracts riskier policyholders.

Dynamic Effects of Patent Policy on Sequential Innovation

Bonwoo Koo and Brian D. Wright
When one patented innovation enables another, endogenous delay of the latter has important implications for the economics of patent life and scope, if licensing is negotiated ex post. Optimal patent life may be finite under competition, even if the royalty imposes no deadweight loss and there is no competitive dissipation of rent.

Closed-Form Solutions to Bundling Problems

John C. Eckalbar
This paper investigates the case of a monopolist selling two distinct goods to a group of m traders who are characterized by their reservation prices, which are drawn independently from uniform distributions over the intervals [ 0, R1] and [ 0, R2].