Anti-piracy policy and quality differential in markets for information goods

ABSTRACT In this paper we analyze the strategic decisions of the government, the incumbent and the pirate in a market where the good is piratable. Like in other studies, we show that deterred or accommodated piracy can occur in equilibrium, but pure monopoly cannot occur for any anti-piracy policy. We prove that the initial quality…

Quality choice and advertising regulation in broadcasting markets

ABSTRACT We consider the role of the endogenous choice of platform quality in a broadcasting duopoly market where competing media platforms also choose their levels of advertising. We compare the equilibrium levels of quality, advertising and welfare under private and mixed duopoly competition.We show that the welfare comparison between the private and mixed duopoly regimes…

The Role of Program Quality and Publicly-owned Platforms in the Free to Air Broadcasting Industry

ABSTRACT In this study, we consider the role of a publicly owned platform and programme quality in the free-to-air broadcasting industry. We compare the equilibrium levels of advertising under private and mixed duopoly competition, and show that the connection between programme quality and advertising incentives is drastically different in each scenario. We also consider the…

Time to Market and Impatient Customers

ABSTRACT We analyse the decision of firms about when to launch their products on the market when they produce differentiated goods and compete on prices. We find two subgame perfect equilibria: one in which the high-quality firm holds its leadership in quality, and another in which the low-quality firm leapfrogs its rival. When the initial…

Litigate or Mediate GameTheory cooperates with Law

ABSTRACT We all are in conflict. Throughout our evolution to a world of limited resources, it is common the clash between people whose interests are contrary. It can be said that in this context the conflict itself is neither positive nor negative, it is natural and necessary for growth and change, and it is inseparable…

Convergence in a Dynamic Heckscher–Ohlin Model with Land

ABSTRACT Convergence among nations that share the same preferences and technologies is a key result of the closed-economy neoclassical growth framework that has received substantial support in the data. However, Heckscher–Ohlin versions of the two-sector neoclassical growth model predict that nations that differ in their capital–labor ratios may not converge to the same steady state,…

Neoclassical Growth and the Natural Resource Curse Puzzle

ABSTRACT  We advance a novel mechanism that helps to explain the puzzling evidence on the natural resource curse. The new channel arises in a standard dynamic Heckscher–Ohlin model composed of small-open economies that take international output prices as given. Within this framework, a more capital-intensive primary sector implies that natural-resource abundant economies grow more slowly…

Are knowledge-intensive services highly concentrated? Evidence from European regions

ABSTRACT Knowledge-intensive services (KIS) are important activities for regional growth and considered to be located at the top of urban and regional hierarchies. However, the widespread use of information and communication technologies (ICT) may lead to a higher degree of decentralization. This paper presents a detailed analysis of the geographical distribution of KIS across European…

Capital structure of foreign affiliates and the investment decision: Two questions to consider

ABSTRACT This paper analyses the ownership structure of foreign affiliates of Spanish firms. In contrast to previous studies on the participation degree, the paper highlights the importance of the previous decision to invest abroad. To do so, an econometric model with a limited dependent variable helps to show that to ignore the previous decision modifies…

Offshoring, outsourcing and the Economic Geography of Europe

ABSTRACT Globalisation has altered the appeal of each region to host economic activities. As firms are pushed to be more competitive, they develop outsourcing and relocation strategies, displacing some production activities to new emplacements. These changes have important impacts in some regions and are modifying the economic geography of Europe. This paper presents the impact…