Issue 2

Volume 30 JOURNAL OF ECONOMICS & MANAGEMENT STRATEGY
Summer 2021

Nursing‐homes’ competition and distributional implications when the market is two‐sided

David Bardey and Luigi Siciliani
We investigate the effect of competition in the nursing‐homes sector with a two‐sided market approach. Using a Hotelling model, our key findings are that (i) the two‐sidedness of the market leads to higher wages for nurses, (ii) this is then passed to residents in the form of higher prices, and (iii) nursing‐homes profits are instead unaffected.

Intermediation in a directed search model

Klaus Kultti, Tuomas Takalo, and Oskari Vähämaa
We provide an example where establishing competitive coordination service platforms is so lucrative that they end up reducing welfare.

Pre‐emptive production and market competitiveness in oligopoly with private information

Yuki Amemiya, Akifumi Ishihara, and Tomoya Nakamura
We investigate a firm's pre‐emptive behavior by comparing Cournot competition and Stackelberg games with one leader and multiple followers, where each firm has access to private information on stochastic demand. We show that the firm prefers pre‐emptive quantity choice (Stackelberg leader) to simultaneous quantity choice (Cournot firm) if and only if the firm is ignorant of the market size compared to the other firm.

Auctions with signaling concerns

Olivier Bos and Tom Truyts
We study a symmetric private value auction with signaling, in which the auction outcome is used by an outside observer to infer the bidders' types. Applications include art auctions and charity auctions.

Historical patent data: A practitioner’s guide

Michael J. Andrews
I provide a primer on six recent large‐scale historical patent data sets for use in innovation research. I discuss how each data set is constructed, the types of patent information included in each, and the quality and completeness of each. Throughout, I emphasize when our knowledge of the history of invention is dependent on the data source used and provide recommendations about which data set is most likely to be best for different contexts. Overall, these data sets paint a remarkably consistent picture of the history of U.S. invention.

The transfer and value of academic inventions when the TTO is one option

Nicolas Carayol and Valerio Sterzi
Although the transfer of professors' inventions is typically performed by an intermediary set up by the university (the technology transfer office), other forms of transfer do coexist in reality. To clarify this situation and its consequences, we develop a model that endogenizes a professor's decision regarding the form of transfer for her invention in which intermediation by the transfer office is only one of two options, the other one being a transfer carried out by the professor herself.

Entrepreneurial experience and firm exit over the business cycle

Erin McGuire
In this paper, I explore business cycle‐related dynamics in differences in exit decisions between serial and novice entrepreneurs. Using time series geographic variation in economic conditions, I examine how businesses founded by serial and novice entrepreneurs differentially respond to changes on average state personal income, alternative employment options, and home values.

Dynamic positioning, product innovation, and entry in a vertically differentiated market

David P. Baron
Two firms compete in a market vertically differentiated by the qualities of their products. Each firm produces a single product with profit proportional to product differentiation, and initial product qualities maximize product differentiation. In each period a firm can undertake innovation to increase the quality of its product. Product innovation that widens the quality gap between the firms' products can attract entrants, which can weaken the incentives for innovation.

Platform leadership and supply chains: Intel, Centrino, and the restructuring of Wi‐Fi supply

Roberto Fontana and Shane Greenstein
In this paper we examine Intel's launch of Centrino and interpret it as platform leader's attempt to restructure a supply chain. We provide a narrative of key actions and how they coordinated changes and offer a framework of the predictable consequences for complementary markets. We then collect data and test these predictions on outcomes in several related complementary markets.