Koichiro Onishi and Sadao NagaokaUsing individuals' life‐cycle invention data, we investigate how graduate education affects inventive performance and inventors' abilities to absorb and combine diverse knowledge sources.
Avi Dor, William Encinosa, and Kathleen Carey A policy concern is that the initiation of Hospital Compare (HC) reporting in Medicare provided leverage to insurers in price negotiations for lowering private sector prices without regard to hospital performance. Using the sequential Nash bargaining framework we provide economic intuition to the contrary: while average hospital prices decline under quality disclosures, hospitals with above‐average quality are able to exert a stronger bargaining position, consequently capturing prices above the market rate.
Farasat A. S. Bokhari, Franco Mariuzzo, and Arnold Polanski During patent litigation, pay‐for‐delay (P4D) deals involve a payment from a patent holder of a branded drug to a generic drug manufacturer to delay entry and withdraw the patent challenge. In return for staying out of the market, the generic firm receives a payment, and/or an authorized licensed entry at a later date, but before the patent expiration. We examine why such deals are stable when there are multiple potential entrants.
Thomas Klier, Joshua Linn, and Yichen C. Zhou We document a strong connection between a vehicle's sales and its energy efficiency. The results have two implications: manufacturers will continue to focus technological improvements on top selling vehicles; and fuel taxes will have larger effects on technology adoption than fuel economy standards and feebates.
Guofang Huang Though haggling has been the conventional way for auto retailers to sell cars, the last two decades have witnessed the systematic adoption of no‐haggle prices by many large dealerships, including the largest new‐ and used‐car dealership chains. This paper develops a structural empirical model to estimate sellers' profits under posted price and haggling, and investigates how market conditions affect sellers' optimal pricing formats.
David P. Baron This paper presents an infinite horizon dynamic model in which two firms compete in a market vertically differentiated by the qualities of their products and consumers have heterogeneous preferences for quality. Given the product qualities offered, the firms engage in price competition that segments the market.
Hyo Kang and Lee Fleming Most research on non‐competes has focused on employees; here we study how non‐competes affect firm location choice, growth, and consequent regional concentration, using Florida's 1996 legislative change that eased restrictions on their enforcement.
Cesaltina Pacheco Pires and Margarida Catalão‐Lopes This paper compares the scenarios of complete and incomplete information in a general model where the incumbent can make a capital investment to deter entry. We show that the informational structure can make an unexpected difference in terms of entry deterrence and efficiency.
Oz Shy and Rune Stenbacka This study evaluates the effects of institutional investors' common ownership of firms competing in the same market. We conduct a detailed welfare analysis within which the competition‐softening effects of an increased degree of common ownership is weighted against the associated diversification benefits.