Can a firm accelerate its learning curve if knowledge about the production function is incomplete? This article identifies a production line specifically set up to create technological knowledge about its production function through scientific experimentation (formal learning) as opposed to learning by doing. The organizational structure of this line was very successful in creating technologica...

This article graphically illustrates the one-to-one duality mapping among the production function, the product supply equation, the derived factor demand equation, and the indirect profit function for the classical profit maximization problem. This pedagogical framework is then used to illustrate how empirical application of conventional duality theory can lead to distorted empirical results if...

I present a simple framework for modeling two-firm market competition, where each firm chooses a market alternative as well as a costless “marketing message”. Consumers follow a frame-dependent choice function, where the frame is a probabilistic function of the firms’ marketing messages. This framework embeds several recent models in the literature on markets with boundedly rational consumers. ...

today, organizations continuously try to find the ways to gain loyal customers because of their advantages. customer to customer interactions has attracted more attention among marketers in which customer-to-customer interactions has been known as one of the most important methods of creating loyal customers. the present paper seeks to propose a service model developed in traveling and tourism ...

This paper estimates returns to research and development (R&D) in Chinese industry. Using a firm-level dataset on innovation activity in largeand medium-size industrial enterprises during 1991 to 1997 in the Beijing area, we estimate three equations – an R&D expenditure equation, a production function, and a profit function. Panel data estimation methods are applied to a semibalanced data set c...

As a consultant within a large, growing, high-profile consulting firm, this challenge is interesting in terms of preventing potential future cyber-attacks. The organization supports a large number of sensitive US Government projects, including hosting or developing portals and applications as part of the work. Protecting this organization’s networks indirectly protects sensitive US Government n...

We study the welfare implications of scalable price targeting, an extreme form of third-degree price discrimination implemented with machine learning for a large, digital firm. Targeted prices are computed by solving the firm’s Bayesian Decision-Theoretic pricing problem based on a database with a high-dimensional vector of customer features that are observed prior to the price quote. To identi...