This paper studies competition between firms when consumers observe a private signal of their preferences over products. Within the class structures that induce pure-strategy pricing equilibria, we derive are optimal for and those consumers. The firm-optimal policy amplifies underlying product differentiation, thereby relaxing competition, while ensuring purchase preferred product, maximizing t...

This paper quantifies the contribution of technology gaps to international income inequality. I develop an endogenous growth model where cross-country differences in R&D efficiency and cross-industry innovation adoption opportunities together determine equilibrium gaps, trade patterns, Countries with higher are richer have comparative advantage more innovation-dependent industries. calibrat...

This paper presents a novel and unique measure of cross-sectional uncertainty constructed from stock options on individual firms. Cross-sectional varied little between 1980 1995 subsequently had three distinct peaks—during the tech boom, financial crisis, coronavirus epidemic. has mixed relationship with overall economic activity, aggregate is much more powerful for forecasting growth. The data...

We introduce a search model where products differ in horizontal attributes and unobserved quality (“experience goods”), firms can establish reputation. show that the inability of consumers to observe before purchase significantly changes how frictions affect market performance. In equilibrium, higher costs reduce match values increase price but boost firms’ investment product quality. Under pla...

The major pathways of transformation of particulate organic matter by heterotrophic bacteria are respiration and production of new biomass. Until today only a limited number of studies have measured simultaneously respiration and production by aggregate-associated bacteria. To study their role in the carbon cycle of aquatic systems we have formed model particles from diatoms (Skeletonema costat...

American industries have grown more concentrated over the last 40 years. In absence of productivity innovation, this should lead to price hikes and output reductions, decreasing consumer welfare. With US census data from 1972 2012, I use disentangle revenue output. Industry-level estimates show that concentration increases are positively correlated real growth, uncorrelated with changes overall...

This paper investigates interactions between exporting and productivity at the firm level, using a panel of firms in the UK chemical industry. This is both highly technology intensive and the UK’s largest exporting sector. We find exporters are more productive than non-exporters, but are also on average smaller. This superior productivity performance among exporters appears to be caused by both...

We present a new approach for the empirical investigation of agglomeration patterns. We examine the clustering of manufacturing firms by identifying patterns of spatial network formation that deviate from randomly generated networks. Using firm-level panel data from Vietnam we calculate transitivity, a measure to determine the strength of clustering of manufacturing firms. We then test whether ...

We study Hotelling’s classic duopoly location model in continuous time with flow payoffs accumulated over time and the price dimension made explicit. In an experimental setting, subjects chose price and location in treatments varying only by the speed of adjustment. We find that the principle of minimum differentiation generally holds, with little distance between subjects’ location decisions. ...

We consider a three-stage model of research and development (R&D) to capture some key elements of research joint ventures (RJVs). In rhe last of the three stages, firms compete in the product market. In the second stage, the firms simultaneously choose unobservable R & D levels. In the first stage, the firms can share some or all of their knowledge with other iirrns in the RJV. We examine the a...