U.S. businesses spend almost $300 billion a year on advertising. The goal of the spending is to attract loyal customers. The relationship capital associated with the resulting loyalty earns substantial rents for businesses and also some rents for customers. Businesses and households pursue those rents. I build a model of the development and valuation of customer relationships and of the resulti...

This paper employs a matched firm production-innovation panel dataset from Chile to explore the response of innovation increased competition arising China shock. The data cover wider range inputs and outputs than previously possible allow generating measures markups efficiency (TFPQ) that correspond closely concepts rents technological leadership envisaged in Schumpeterian literature. Except fo...

Consumers may observe previous consumers’ choices. They may follow their choices if they think these consumers are better informed. In turn, firms may concentrate on influencing the early consumers. This, in turn, changes the nature of early consumers’ choice behavior as a signal for other consumers. In this paper I show that firms’ influence activities need not distort earlier consumers’ decis...

This paper summarizes and comments on Conner (1991) that contributes to the strategic management area by providing an historical comparison of resource-based theory and five schools of thought within industrial organization economics. Conner (1991) argues that the fundamental distinction between resource-based theory and transaction costs theory is that resource-based theory focuses on the depl...

Models of spatial competition are typically static, and exhibit multiple freeentry equilibria. Incumbent firms can earn rents in equilibrium because any potential entrant expects a significantly lower market share (since it must fit into a niche between incumbent firms) along with fiercer price competition. Previous research has usually concentrated on the zero-profit equilibrium, at which ther...

The standard revenue-maximizing auction discriminates against a priori stronger bidders so as to reduce their information rents. We show that such discrimination is no longer optimal when the auction’s winner may resell to another bidder, and the auctioneer has non-Bayesian uncertainty about such resale opportunities (including possible leakage of private information before resale). We consider...

Carbon dioxide emissions correspond to fossil resource use. When considering this supply side of climate protection, crucial questions come to fore. It seems likely that owners of fossil resources would object to emission reductions. Moreover, policy instruments such as taxes may not be effective at all: it seems individually rational to leave no fossil resources unused. In this context, it can...

The supposition that agricultural intensification results in land sparing for conservation has become central to policy formulations across the tropics. However, underlying assumptions remain uncertain and have been little explored in the context of conservation incentive schemes such as policies for Reducing Emissions from Deforestation and forest Degradation, conservation, sustainable managem...