Firms often have imperfect information about demand for their products. We develop an integrated econometric and theoretical framework to model firm demand assessment and subsequent pricing decisions with limited information. We introduce a panel data discrete choice model whose realistic assumptions about consumer behavior deliver partially identified preferences and thus generates ambiguity i...

Nucleolus is a dynamic structure that controls biogenesis of ribosomal RNA and senses cellular stresses. Nucleolus contains a number of proteins including ribosomal proteins that conduct cellular stresses to downstream signaling such as p53 pathway. Recently, it has been reported that modification by a ubiquitin-like molecule, Nedd8, regulates subnuclear localization of ribosomal protein L11. M...

Microsoft has been dominating the market for PC operating systems (OS) for the last two decades. This paper analyzes the decision of …rms to standardize on the mainstream OS family and assesses whether upgrading to the latest version within the MS family is a substitute for using niche OS. We address the following questions: 1) How likely is a …rm to standardize on the Microsoft family? 2) How ...

This study examines the pricing behavior of online retailers (e-tailers) in Chinese e-commerce markets. Descriptive statistics indicate that prices have not converged in China’s e-commerce markets and that there is relatively more price variation in markets for cosmetics, compact discs, gifts and books. Fixed effects model estimates show that e-tailer’s characteristics are significant determina...

Serial correlation in annual growth rates carries a lot of information on growth processes – it allows us to directly observe firm performance as well as to test theories. Using a 7-year balanced panel of 10 000 French manufacturing firms, we observe that small firms typically are subject to negative correlation of annual growth rates, whereas larger firms display positive correlation. Furtherm...

In this paper, we study industry equilibrium under the assumptions that (1) #rms need outside #nancing and (2) they have a moral hazard problem in taking potentially excessive risks. We characterize an industry equilibrium with credit rationing, where #rms choose not to take risks, and compare this to the industry equilibrium in the absence of credit rationing. In both cases, we show that compe...

Crowdfunding provides innovation in enabling entrepreneurs to contract with consumers before investment. Under demand uncertainty, this improves screening for valuable projects. Entrepreneurial moral hazard threatens this benefit. Studying the trade-off between screening and moral hazard, the paper characterizes optimal mechanisms. Popular all-or-nothing reward-crowdfunding schemes reflect thei...

The paper sets up a two-country asymmetric trade model with heterogeneous firms, search frictions and endogenous labor market institutions. Countries are linked by trade in goods and non-cooperatively set unemployment benefits to maximize national welfare. We show that more open and smaller economies have more generous unemployment benefit replacement rates as a larger fraction of the costs is ...

Employing the error correction method and historical decomposition with direct acyclic graphs, we quantify the impacts of domestic and oversea animal disease crises on the Korean meat markets. We find that (a) the market partially recovered 16 months after the foot-and-mouth outbreak in 2000, and 13 months after the avian influenza and the U.S. BSE incidents in 2003; (b) animal disease outbreak...

Many important economic questions hinge on the extent to which new goods either crowd out or complement consumption of existing products. Recent methods for studying new goods rule out complementarity by assumption, so their applicability to these questions has been limited. I develop a new model that relaxes this restriction, and use it to study competition between print and online newspapers....